Free Forex Signals

• The EUR/JPY cross may test the immediate barrier at the nine-day EMA of 185.30.
• The 14-day Relative Strength Index at 53.17 signals mild bullish momentum.
• Immediate support lies at the lower boundary of the ascending channel, around 185.10.

EUR/JPY extends its losses for the second successive day, trading around 185.20 during European hours on Monday. The technical analysis of a daily chart indicates that the currency cross is remaining within the ascending channel pattern, signaling a bullish bias.

The EUR/JPY cross is maintaining a mildly bullish near-term bias as it holds above the 50-day Exponential Moving Average (EMA) while being marginally capped by the nine-day EMA. The 14-day Relative Strength Index (RSI) at 53.17 leans slightly to the bullish side without reaching overbought territory, suggesting a constructive but not overstretched upside tone as long as price continues to respect underlying trend support.

The EUR/JPY cross could test the immediate barrier at the nine-day EMA of 185.30. A rebound above the short-term moving average would strengthen the bullish bias and support the currency cross to target the all-time high of 187.95 set on April 17, followed by the upper boundary of the ascending channel around 188.90.

On the downside, the EUR/JPY cross tests the immediate support at the lower boundary of the ascending channel at 185.10, followed by the 50-day EMA at 184.81. A break below this confluence support zone may cause a bearish reversal, potentially pressing the currency cross down toward its nine-month low of 179.37, recorded on August 3.