EUR/JPY Price Forecast: Rebounds from 172.50 support near 50-day EMA

• EUR/JPY may find its primary support at the 50-day EMA at 172.47.
• The 14-day Relative Strength Index stays below 50, reinforcing the bearish outlook.
• A rebound back into the ascending channel would restore the bullish bias.

EUR/JPY halts its three-day losing streak, trading around 172.60 during the Asian hours on Thursday. The technical analysis of the daily chart indicates a shift from bullish to bearish bias as the currency cross is positioned slightly below the ascending channel pattern. However, a rebound back into the channel would suggest a false breakout, and the broader upward trend remains intact.

However, the 14-day Relative Strength Index (RSI) remains below the 50 mark, suggesting that bearish bias is strengthening. Additionally, the short-term price momentum is weaker as the EUR/JPY cross is positioned below the nine-day Exponential Moving Average (EMA).

On the downside, the immediate support lies at the 50-day EMA at 172.47. A break below this level would dampen the medium-term price momentum and prompt the EUR/JPY cross to navigate the region around the three-month low of 169.72, which was recorded on July 31.

A rebound into the ascending channel would revive the bullish bias and lead the EUR/JPY cross to test the nine-day EMA of 173.59. Further advances would improve the short-term price momentum and support the currency cross to explore the region around the upper boundary of the ascending channel at 175.30, followed by the all-time high of 175.43, reached in July 2024.

EUR/JPY: Daily Chart