Key Moments
- EUR/JPY trades around 182.50 after snapping a three-session advance, remaining below its nine-period and 50-period EMAs.
- Key downside levels include the eight-month low at 179.37 and the nine-month low at 175.70, while the 14-day RSI near 39 points to soft momentum.
- Euro is the weakest against the Japanese Yen on the day, according to cross-asset percentage moves.
Bearish Tone Persists Around 182.50
EUR/JPY has paused its three-day run higher and is changing hands near 182.50 during early European trading on Friday. The pair maintains a negative short-term bias, with spot prices holding beneath both the nine-period and 50-period Exponential Moving Averages (EMAs).
These short- and medium-term EMAs now serve as stacked resistance levels, signaling a restrained upside. At the same time, the 14-day Relative Strength Index (RSI) stands around 39, indicating subdued momentum rather than a clearly oversold market.
Policy Attention on Yen Weakness
Yen dynamics remain in focus as authorities in Japan and the United States respond to recent currency moves. Analysts at Scotiabank highlight that “officials (both Japanese and US) remain concerned about the level and path of the Yen, and have been determined to push back on recent weakness.”
This ongoing vigilance, as described by analysts, emphasizes discomfort with the current USD/JPY path and reinforces the perception that policymakers are closely observing the currency as it moves back toward post-intervention lows.
Key Technical Levels for EUR/JPY
Any further official action aimed at bolstering the Japanese Yen (JPY) would likely weigh on EUR/JPY, exposing downside levels near the recent eight-month trough at 179.37, which was set on August 3, and then the nine-month low at 175.70.
On the topside, the first notable resistance for EUR/JPY is located at the nine-day EMA of 183.09, followed by the 50-day EMA at 184.63. A sustained move above both of these moving averages would signal a bullish shift and could open the way for a test of the all-time high at 187.95, recorded on April 17.
EUR/JPY – Daily Setup Overview
The current daily configuration shows EUR/JPY trading below its short- and medium-term EMAs, with momentum indicators pointing to weakness rather than capitulation. The market is effectively caught between nearby overhead resistance and significant multi-month lows on the downside.
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