The EUR/JPY currency pair is exhibiting signs of bullish strength as it approaches potential record levels, with the possibility of challenging the all-time high of 177.94. The pair is currently trading around 176.00 during European trading hours, ending a four-day decline that had ensued earlier in the week.
Technical analysis of the daily chart reveals an overall positive outlook. The currency pair remains within an ascending channel pattern, indicating sustained upward momentum. Short-term indicators support this view; notably, the price is trading above the nine-day Exponential Moving Average (EMA), which is now a key support level at approximately 175.78. Furthermore, the 14-day Relative Strength Index (RSI) is positioned above the midpoint of 50, suggesting increasing bullish sentiment.
If the prevailing momentum persists, the pair could target the previous all-time peak of 177.94, set on October 9. A decisive move above this level would reinforce the bullish outlook and open the possibility of advancing toward the upper boundary of the ascending channel, near 181.30. Conversely, immediate support can be identified at the nine-day EMA of 175.78, with an additional support zone around 175.40, corresponding to the lower boundary of the channel.
A sustained move below this support zone would signal weakening bullish momentum and could prompt the pair to test the 50-day EMA at approximately 173.82. Such a decline might further extend downward, pushing the currency pair toward recent six-week lows around 172.14, recorded on September 9. Monitoring these key levels will be crucial in assessing whether the upward trend can continue or if corrective pressures will dominate the near-term outlook.
