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EUR/JPY holds above EMAs but rises wedge signals reversal risk
Traders may watch 187.00 as a test level, with support clustered near 186.18 and 185.60 if the wedge breaks down.
EUR/JPY was largely steady after modest gains, trading around 186.60 during Wednesday’s Asian session, with the pair holding above the nine-period and 50-period EMAs. FXStreet said this keeps a bullish near-term tone, supported by short- and medium-term EMA alignment below current price.
The report also pointed to momentum conditions, citing a 14-day RSI around 60 as constructive but not yet signaling overbought levels. Even so, technical analysis shows EUR/JPY is still operating within a rising wedge on the daily chart, which raises the risk of a bearish reversal.
On the upside, FXStreet highlighted initial resistance near the upper boundary of the rising wedge around 187.00. It added that a successful break above the wedge could open the door to a move toward the all-time high near 187.95, recorded on April 17.
Downside levels center on a confluence of support near the nine-day EMA around 186.18, followed by the lower wedge boundary near 185.60 and the 50-day EMA at 185.39. FXStreet said a breakdown from that zone could pressure the pair toward the five-month low near 181.87, from March 16, and the seven-month low around 180.81.