• EUR/JPY tests confluence resistance near the nine-day EMA at 182.54.
• The 14-day Relative Strength Index at 45 signals soft momentum.
• Further losses may target the descending channel’s lower boundary near 178.20.

EUR/JPY inches lower after two days of gains, trading around 182.40 during the Asian hours on Friday. The technical analysis of the daily chart suggests a potential bullish reversal as the currency cross is testing the upper boundary of the descending channel pattern. However, the 14-day Relative Strength Index (RSI) at 45 (neutral) sits below the 50 mid-line, aligning with soft momentum.

The EUR/JPY cross holds beneath the nine-day Exponential Moving Average (EMA) and the 50-day EMA, keeping the short-term tone heavy as the medium-term gauge flattens. The 50-day EMA has started to roll over, signaling fading trend strength.

The EUR/JPY cross is testing the confluence resistance zone at the nine-day EMA at 182.54, followed by the 50-day EMA at 182.84, aligned with the upper descending channel boundary. A break above this resistance zone would cause the emergence of the bullish bias and support the pair to explore the region around the all-time high of 186.88, which was recorded on January 23.

Failure to reclaim the nine-day EMA would cap rebounds and keep pressure on nearby static floors. A downside extension could target the lower boundary of the descending channel around 178.20. Further declines below the channel would strengthen the bearish bias and put downward pressure on the currency cross to navigate the region around the four-month low of 175.70.

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