Key Moments
- EUR/JPY trades near 187.20 after retreating from the upper boundary of its ascending channel around 187.60.
- The 14-day Relative Strength Index stands close to 64.1, signaling firm but not overbought upside momentum.
- Initial support is identified at the nine-day EMA of 186.52, with additional backing from a confluence zone near 185.70-185.49.
EUR/JPY Technical Setup
EUR/JPY is easing back following two consecutive sessions of gains, changing hands around 187.20 during Asian trading on Thursday. Despite the pullback, the cross maintains a constructive short-term outlook as it remains above both the nine-day and 50-day Exponential Moving Averages (EMAs). The shorter EMA positioned above the longer EMA underpins the bullish structure.
The 14-day Relative Strength Index (RSI) is hovering near 64.1, below the conventional overbought threshold. This reading points to sustained upward momentum without clear signs of exhaustion. On the daily chart, EUR/JPY continues to climb within an ascending channel, underscoring a strong positive bias.
Resistance Levels and Upside Scenarios
The immediate upside test for the cross is located at the upper boundary of the ascending channel, close to 187.60. If buyers manage to push prices above this barrier, the move could open the way for a retest of the all-time high at 187.95, which was reached on April 17.
Support Zone and Downside Risks
On the downside, initial support is seen at the nine-day EMA, currently around 186.52. Beneath this level, additional technical support is clustered just lower, including the lower band of a rising wedge pattern near 185.70 and the 50-day EMA at 185.49. Together, these levels form a closely aligned confluence area.
A clear break below this support zone would mark a notable deterioration in the technical outlook and could shift sentiment in favor of sellers. Should bearish momentum build, price action may gravitate toward the five-month low at 181.87. Further weakness could then put the seven-month low at 180.81 into focus.
Yen Performance Ahead of Central Bank Decisions
Commentary from strategists at Scotiabank indicates that the Japanese Yen is drawing modest support in the run-up to key central bank meetings. They note that the currency is “up a fractional 0.1% vs. the USD but outperforming most of the G10 currencies in overall quiet trade as markets look to both the 2pm ET FOMC and the July 31 BoJ policy decision.” According to their assessment, market conditions remain subdued, while positioning reflects caution as investors weigh near-term U.S. Dollar dynamics against the upcoming BoJ decision.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Euro Performance Against Major Currencies
The table below presents the daily percentage change of the Euro (EUR) versus a range of major currencies. Over this period, the Euro is weakest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.16% | 0.19% | 0.05% | 0.04% | 0.07% | -0.19% | 0.22% | |
| EUR | -0.16% | 0.02% | -0.09% | -0.12% | -0.11% | -0.36% | 0.06% | |
| GBP | -0.19% | -0.02% | -0.11% | -0.15% | -0.13% | -0.37% | 0.07% | |
| JPY | -0.05% | 0.09% | 0.11% | -0.01% | 0.02% | -0.25% | 0.20% | |
| CAD | -0.04% | 0.12% | 0.15% | 0.01% | 0.04% | -0.23% | 0.21% | |
| AUD | -0.07% | 0.11% | 0.13% | -0.02% | -0.04% | -0.24% | 0.17% | |
| NZD | 0.19% | 0.36% | 0.37% | 0.25% | 0.23% | 0.24% | 0.47% | |
| CHF | -0.22% | -0.06% | -0.07% | -0.20% | -0.21% | -0.17% | -0.47% |
The heat map reflects how major currencies have moved relative to one another. The base currency is selected from the left-hand column, while the quote currency is chosen from the top row. For instance, selecting the Euro in the left column and moving across to the U.S. Dollar cell provides the percentage move for EUR (base)/USD (quote).
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