EUR/JPY Price Forecast: Stays near 178.50 amid ongoing bearish bias

Market impact: bearish bias, but vulnerable to a short-term rebound.

The article is primarily a technical signal rather than a new macroeconomic catalyst. EUR/JPY remains below its nine- and 50-day EMAs and inside a descending channel, implying that rallies may continue to attract selling pressure. A sustained break below the channel support near 177.90 would strengthen the bearish setup and expose the region around 175.70, the prior 10-month low identified by FXStreet.

However, the 14-day RSI near 23 indicates heavily oversold conditions. That raises the probability of a corrective bounce or short-covering, even if the broader near-term trend remains negative. A recovery toward the nine-day EMA near 180.84 would initially represent mean reversion rather than a confirmed trend reversal; stronger evidence of stabilization would require a move back above the 50-day EMA near 183.72.

For traders, the key implication is asymmetric two-way risk: downside momentum could accelerate if 177.90 fails, but chasing weakness is vulnerable to an oversold rebound. The setup is most relevant to EUR/JPY and, by correlation, other yen crosses such as GBP/JPY and AUD/JPY; a broader yen-strength environment would reinforce the bearish interpretation, while renewed carry demand or softer expectations for Japanese policy tightening could undermine it.

The signal is likely short-term in nature unless confirmed by fundamental drivers such as widening euro-area/Japan yield expectations, ECB–BoJ policy repricing, or a broader change in risk appetite. Traders should monitor whether EUR/JPY breaks and holds below 177.90, or instead reclaims 180.84. A move above the latter would weaken the immediate bearish case; failure near that area would leave the descending-channel interpretation intact.