EUR/JPY Price Forecast: Stays above 173.00 after rebounding from 50-day EMA

• EUR/JPY may target its initial support at the 50-day EMA at 172.49.
• The 14-day Relative Strength Index still stays below 50, indicating the bearish bias is active.
• The primary barrier appears at the nine-day EMA of 173.48.

EUR/JPY gains ground after a neutral day, trading around 173.10 during the Asian hours on Friday. The technical analysis of the daily chart indicates a revival of bullish bias as the currency cross rebounded toward the ascending channel pattern.

However, the 14-day Relative Strength Index (RSI) remains below the 50 mark, suggesting that bearish bias is still in play. 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 primary support appears at the 50-day EMA at 172.49. A break below this level would weaken the medium-term price momentum and put downward pressure on the EUR/JPY cross to navigate the region around the three-month low of 169.72, which was recorded on July 31.

A successful return into the ascending channel would revive the bullish bias and lead the EUR/JPY cross to test its initial barrier at the nine-day EMA of 173.48. Further advances would improve the short-term price momentum and support the currency cross to explore the area around the ascending channel's upper boundary at 175.40, aligned with the all-time high of 175.43, reached in July 2024.

EUR/JPY: Daily Chart