EUR/JPY Price Forecast: Trades Near 180.50 After Breaking Above Nine-Day EMA

EUR/JPY extended its gains on Monday, rising for a second consecutive session and trading near 180.50 during the European session. Daily chart technical analysis shows that although the cross has rebounded in the short term, it remains within a descending channel, maintaining an overall bearish bias.

**Short-Term Momentum Improves but Trend Unchanged**

The pair has broken above the nine-day exponential moving average (EMA), improving short-term momentum and providing some support for bulls. However, until the descending channel pattern is effectively broken, this rebound leans more toward a technical correction than a trend reversal. Market participants note that the strength of resistance near the channel's upper boundary will be key to determining the next directional move.

**Key Resistance and Support Levels**

On the upside, if the pair can further hold and break above the channel's upper boundary, it may open room for a recovery toward higher levels. On the downside, the area near the nine-day EMA has turned into short-term support; if this zone is lost, the pair could retest recent lows. According to market reports, the battle between bulls and bears above the 180 level remains intense.

**Key Focus Ahead**

Investors are closely monitoring upcoming economic data and monetary policy signals from the eurozone and Japan to assess the cross's next move. Against the backdrop of a sustained descending channel pattern, analysts advise caution regarding the extent of any rebound and recommend against prematurely confirming a trend reversal.