• EUR/JPY may retest the upper boundary of the descending channel around 185.70.
• The 14-day Relative Strength Index at 53 signals moderate, unstretched bullish momentum.
• The primary support appears at the nine-day EMA at 185.18.

EUR/JPY halts its five-day winning streak, trading around 185.40 during the Asian hours on Friday. The currency cross is holding a constructive near-term bias as it sits above both the nine- and 50-period Exponential Moving Averages (EMAs). This positioning suggests dip-buying interest remains in place.

The 14-day Relative Strength Index (RSI) around 53 hints at moderate, rather than stretched, bullish momentum.

The technical analysis of the daily chart suggests the EUR/JPY cross is near the upper boundary of the descending channel at 185.70, indicating a potential bullish reversal.

A sustained break above the descending channel would offer bullish confirmation and support the EUR/JPY cross to explore the region around the all-time high of 187.95, recorded on April 17.

On the downside, the initial support lies at the nine-day EMA at 185.18, followed by the 50-day EMA of 184.94. A break below moving averages would revive the bearish bias and put downward pressure on the EUR/JPY cross to navigate the region around the three-month low of 181.87, recorded on March 16, followed by a five-month low of 180.81, reached on February 12.

(The technical analysis of this story was written with the help of an AI tool.)