EUR/JPY Price Forecast: Holds Above 185.50 Near Moving Averages

EUR/JPY regained upward momentum during Thursday's Asian session after a slight pullback the previous day, currently trading around 185.75. The daily chart technical pattern shows the currency pair continues to operate within an ascending channel, with the overall bullish bias remaining intact.

**Key Moving Averages Provide Support**

The exchange rate continues to hold firmly above key moving averages, providing confidence to bulls. According to market technical analysis, the maintenance of EUR/JPY's constructive outlook largely relies on support from the 100-day Simple Moving Average (SMA). As long as the price remains above this average, the short-term uptrend is expected to persist. Momentum indicators such as the Relative Strength Index (RSI) also emit bullish signals, further confirming that current buying pressure dominates.

**Upside Resistance Awaits Breakout**

Despite the favorable trend, upside potential still faces challenges. According to analysis, the first upside resistance level is located at 186.32. If the exchange rate can effectively break through this zone, it will open room for further gains. Until then, the price may consolidate between current levels and the resistance to accumulate momentum. Market reports indicate that the bullish alignment of moving averages reinforces upward momentum, but sell signals from some oscillators such as the MACD also suggest that short-term movements may remain volatile.

**Focus on Channel Pattern Evolution**

Currently, EUR/JPY is trading within an ascending channel pattern, which is the core bullish basis at the technical level. As long as the lower boundary of the channel is not breached, the overall upward trend will not reverse. Investors need to closely monitor the price action near the channel boundaries, especially the support strength in the 185.50 region below, which will be key to determining the shift in short-term bullish and bearish forces.