The How high will Cardano go in 2025?nine-day EMA at 163.41 emerges as immediate resistance following recent declines
RSI readings dipping below 50 suggest increasing bearish pressure on the currency pair
Critical support zone forms between 162.50 (channel boundary) and 162.23 (50-day EMA)
The EUR/JPY exchange rate continues its corrective phase, marking three consecutive sessions of declines as Asian trading commences Friday. Current price action hovering near 162.80 maintains position within the broader ascending channel visible on daily timeframes, keeping the structural bullish bias technically intact despite recent weakness.
Technical indicators reveal mixed signals as the pair trades below the nine-day exponential moving average, reflecting short-term bearish momentum. The 14-period relative strength index's descent below the neutral 50 level further corroborates the current downward pressure, though the overall technical structure remains constructive above channel support.
Potential upside scenarios would require a decisive break above the immediate resistance at 163.41 (nine-day EMA). Such development could reignite bullish momentum toward retesting the recent six-month peak at 165.21, recorded May 13. Beyond this level, traders would eye the October 2024 highs near 166.69 as the next significant technical barrier.
Conversely, sustained pressure below current levels brings the ascending channel's lower boundary near 162.50 into focus, with additional support emerging at the 50-day EMA (162.23). A confirmed breakdown below this critical zone would signal potential for extended declines toward the March lows near 155.59, followed by the December 2023 bottom at 154.41.
Technical Indicators Overview
The daily chart setup presents traders with several important technical considerations. The maintained position within the ascending channel suggests the broader uptrend remains technically valid, though recent price action indicates potential for further consolidation or correction. Momentum indicators show conflicting signals, with the RSI suggesting bearish pressure while the channel structure maintains bullish implications.
Moving average analysis reveals the nine-day EMA (163.41) now acting as resistance, while the 50-day EMA (162.23) provides underlying support. The convergence of these technical factors creates a decisive zone between 162.23-162.50 that could determine the pair's next directional move. Traders should monitor price action around these levels closely for potential breakout or reversal signals.
Volume analysis during recent declines will prove particularly important, as lighter selling pressure might suggest the current pullback represents healthy consolidation within the broader uptrend. Conversely, increasing volume on downward moves would strengthen the bearish case and increase probability of testing lower support levels.