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- EUR/JPY could test the lower boundary of the descending channel around 177.70.
- The 14-day Relative Strength Index at 23.09 indicates oversold conditions.
- The currency cross could find an initial barrier at the nine-day EMA of 182.00.
EUR/JPY loses ground for the second consecutive day, trading around 178.40 during the Asian hours on Tuesday. Technical analysis of the daily chart indicates the currency cross remains within the descending channel pattern, signalling a bearish bias.
The EUR/JPY cross maintains a bearish near-term tone as it remains below both the nine- and 50-period Exponential Moving Averages (EMAs). The pair is extending its pullback from recent highs, and the Relative Strength Index (RSI) at 23.09 sits in oversold territory, hinting that while downside momentum is stretched, sellers still dominate below the clustered EMAs.
The EUR/JPY cross is positioned slightly above the newly formed support level at the lower boundary of the descending channel around 177.70. A break below the channel would strengthen the bearish bias and put downward pressure on the cross as it navigates the region around the 10-month low of 175.70, recorded in November 2025.
On the upside, the EUR/JPY cross could rebound toward the nine-day EMA of 182.00, followed by the 50-day EMA of 184.13. Further resistance lies at the upper boundary of the descending channel around 185.70, followed by the all-time high of 187.95 set on April 17.
