EUR/JPY Price Forecast: Breaks below 179.50 as bearish bias prevails

EUR/JPY extends its gains for the third successive day, trading around 179.40 during the Asian hours on Monday. The currency cross is extending a bearish near-term tone as price holds beneath both the nine-period and 50-period Exponential Moving Averages (EMAs).

The short-term EMA remains below the longer 50-period EMA, reinforcing downside pressure, while the 14-day Relative Strength Index (RSI) indicator at 27.71 slips into oversold territory, hinting that while sellers are in control, the pace of the decline could soon moderate.

The EUR/JPY cross may retest the initial support at the eight-month low of 179.37, reached on August 3. Further support lies at the nine-month low of 175.70.

On the upside, the EUR/JPY cross rises toward the nine-day EMA at 184.07, followed by 185.02. A break above these moving averages would cause a bullish shift and support the currency cross to explore the region around the all-time high of 187.95, which was recorded on April 17.