EUR/JPY Price Forecast: Tests rising wedge bottom near 184.00

EUR/JPY depreciates after two days of gains, trading around 184.20 during the Asian hours on Monday. The technical analysis of a daily chart indicates that the spot remains within a rising wedge, signaling that the upward trend is losing momentum and that the wedge typically acts as a bearish reversal.

The EUR/JPY cross retains a constructive near-term tone as it holds above the nine-period Exponential Moving Average (EMA), keeping price supported despite last week's pullback from the highs. The 14-day Relative Strength Index (RSI) around 50 suggests neutral momentum after the prior correction, hinting that directional conviction is still tentative while the broader uptrend structure remains intact.

The EUR/JPY cross tests the immediate support at the lower boundary of the rising wedge around 184.10, followed by the nine-day EMA of 183.78. A decisive break below this confluence support zone would revive the bearish bias, potentially pressing the currency cross down toward its eight-month low of 179.37, recorded on August 3. If downward momentum continues, the next key technical target lies at the nine-month low of 175.70.

On the upside, the primary resistance lies at its 50-day EMA near 184.49, followed by the upper boundary of the rising wedge around 185.80. A sustained break above the wedge could signal a broader bullish resurgence, opening the path for the currency cross to retest the area surrounding its all-time peak of 187.95 set on April 17.