EUR/JPY slips to 177.70 as descending channel caps gains; focus on 177.54 support

by VT Markets
/
Oct 21, 2026

EUR/JPY snapped a four-day rise and traded near 177.70 in Asian hours on Tuesday, while the daily chart kept the cross inside a descending channel, maintaining a bearish tilt. Price action is boxed in between near-term support and medium-term resistance, holding just above the nine-day EMA at 177.54, while the 50-day EMA at 179.84 limits the upside and leaves the broader bias neutral rather than outright bullish. Momentum reads soft but not stretched, with the 14-day RSI at 42.59 below its midline.

Immediate focus is on the nine-day EMA at 177.54; a break lower would reinforce downside pressure towards the 11-month low of 175.70, set in November 2025, and the channel floor near 175.60. If the pair slips through that clustered support, losses could extend to the 14-month low at 169.72. Resistance is seen at the channel top around 178.70 and then the 50-day EMA at 179.84, with a push above the latter risking a reversal towards the record high of 187.95 from April 17. Separately, BoJ Governor Kazuo Ueda put underlying inflation “quite close” to the 2% target, citing tight labour markets and global AI demand.

Technical Outlook for EUR/JPY

EUR/JPY snapped a four-day rise and traded near 177.70 in Asian hours on Tuesday, while the daily chart kept the cross inside a descending channel, maintaining a bearish tilt. Price action is boxed in between near-term support and medium-term resistance, holding just above the nine-day EMA at 177.54, while the 50-day EMA at 179.84 limits the upside and leaves the broader bias neutral rather than outright bullish. Momentum reads soft but not stretched, with the 14-day RSI at 42.59 below its midline.

Key Support and Resistance Levels

Immediate focus is on the nine-day EMA at 177.54; a break lower would reinforce downside pressure towards the 11-month low of 175.70, set in November 2025, and the channel floor near 175.60. If the pair slips through that clustered support, losses could extend to the 14-month low at 169.72. Resistance is seen at the channel top around 178.70 and then the 50-day EMA at 179.84, with a push above the latter risking a reversal towards the record high of 187.95 from April 17. Separately, BoJ Governor Kazuo Ueda put underlying inflation “quite close” to the 2% target, citing tight labour markets and global AI demand.

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