EUR/JPY Price Forecast: Holds losses near 182.50 as bearish bias prevails

• EUR/JPY could find initial support at the eight-month low of 179.37.
• The 14-day Relative Strength Index near 39 indicates weak momentum.
• The initial barrier lies at the nine-day EMA of 183.09.

EUR/JPY halts its three-day winning streak, trading around 182.50 during the early European hours on Friday. The currency cross is retaining a bearish near-term bias as spot holds below both the nine-period and 50-period Exponential Moving Averages (EMAs).

The short- and medium-term moving averages now act as layered overhead resistance, hinting at a capped tone while the 14-day Relative Strength Index (RSI) Indicator around 39 suggests weak momentum rather than outright oversold conditions.

Yen under scrutiny as Japan and US officials push back on weakness

Analysts at Scotiabank highlight that "officials (both Japanese and US) remain concerned about the level and path of the Yen, and have been determined to push back on recent weakness." This ongoing vigilance underscores the degree of discomfort with the current USD/JPY trajectory and reinforces the sense that policymakers are closely monitoring the currency’s performance as it drifts back toward post-intervention lows.

Further intervention to support the Japanese Yen (JPY) would put downward pressure on the EUR/JPY cross to navigate the region around the eight-month low of 179.37, reached on August 3, followed by the nine-month low of 175.70.

On the upside, the EUR/JPY cross could find initial resistance at the nine-day EMA of 183.09, followed by the 50-day EMA at 184.63. Further advances above these moving averages would cause a bullish emergence and support the currency cross to explore the region around the all-time high of 187.95, which was recorded on April 17.

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