EUR/JPY Price Forecast: Steadies above 185.00, moving averages following ZEW Survey data

EUR/JPY pares its daily losses, still remaining in the negative territory and trading around 185.10 during the European hours on Tuesday. The currency cross remains steady following the release of the German ZEW Survey data.

German ZEW Survey - Economic Sentiment unexpectedly improves to -10.2 in May, while it was expected to deteriorate further to -19.8 from -17.2 in April. Meanwhile, the Current Situation Sub-Index dropped to -77.8, against the expected -77.5 reading and the previous reading of -73.7.

The technical analysis of the daily chart indicates the EUR/JPY cross is holding a modest bullish bias as it consolidates above both the nine-period and 50-period Exponential Moving Averages (EMAs). This positioning suggests the recent pullback is being contained by dynamic support, while the 14-day Relative Strength Index (RSI) near 49 hints at neutral momentum, indicating that bulls retain control but lack strong directional conviction for now.

On the upside, the EUR/JPY cross may explore the region around the all-time high of 187.95, which was recorded on April 17.

The immediate support lies at the nine-day EMA of 184.90, aligned with the 50-day EMA at 184.89. Further declines below these averages would cause the bearish emergence and put downward pressure on the currency cross to navigate the region around a nearly 11-week low of 181.87, recorded on March 16, followed by a five-month low of 180.81, which was reached on February 12.

(The technical analysis of this story was written with the help of an AI tool.)