Key Moments
- EUR/JPY has extended its decline for a third consecutive session, trading around 183.60 during Asian hours on Thursday.
- The pair is holding just above its nine-day EMA at 183.49, while remaining capped below the 50-day EMA at 184.51.
- The 14-day RSI stands at 47.11, indicating neutral-to-soft momentum rather than a strong directional move.
Technical Setup: Short-Term Support vs Medium-Term Resistance
EUR/JPY continued to edge lower for the third straight day, with the cross quoted near 183.60 during Thursday’s Asian session. Momentum measures remain subdued, with the 14-day Relative Strength Index at 47.11 pointing to a neutral-to-soft tone instead of a clear bullish or bearish trend.
The cross is displaying a mildly negative near-term structure. It is trading just above its nine-day Exponential Moving Average at 183.49, but remains below the 50-day Exponential Moving Average at 184.51. This divergence between short-term and medium-term moving averages suggests that, while immediate support is nearby, the broader trend backdrop is still constrained by overhead resistance.
Downside Risk Levels in Focus
Immediate chart support is located at the nine-day EMA of 183.49. A firm move below this level would reinforce the existing bearish bias in EUR/JPY, opening the door for a test of the eight-month low at 179.37, which was reached on August 3. Should selling pressure persist beyond that point, the next notable downside level is the nine-month low at 175.70.
Potential Upside Scenario
On the upside, a recovery in the cross would initially target the 50-day EMA around 184.51, which is acting as primary resistance. A clear break above this medium-term barrier could mark the start of a more constructive phase, paving the way for EUR/JPY to revisit the region around its all-time high of 187.95, established on April 17.
Market Commentary and Policy Backdrop
Analysts at Scotiabank highlighted the evolving policy narrative, noting that, while “there have been no comments from FinMin Katayama or ViceMin Mimuri,” local reporting is increasingly “highlighting the potential for tension between US officials and Japan’s government as the US pushes for BoJ tightening.”
Technical analysis for this EUR/JPY overview was prepared with the assistance of an AI tool, as disclosed by the publisher.
Euro Performance Against Major Currencies
On the day, the euro showed mixed performance versus its major peers. According to the data below, the euro was weakest against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | -0.01% | -0.08% | 0.03% | 0.17% | 0.46% | 0.03% | |
| EUR | 0.00% | 0.00% | -0.06% | 0.00% | 0.17% | 0.44% | 0.03% | |
| GBP | 0.00% | -0.01% | -0.06% | 0.00% | 0.19% | 0.44% | 0.01% | |
| JPY | 0.08% | 0.06% | 0.06% | 0.09% | 0.24% | 0.48% | 0.08% | |
| CAD | -0.03% | -0.00% | -0.01% | -0.09% | 0.15% | 0.42% | -0.01% | |
| AUD | -0.17% | -0.17% | -0.19% | -0.24% | -0.15% | 0.28% | -0.15% | |
| NZD | -0.46% | -0.44% | -0.44% | -0.48% | -0.42% | -0.28% | -0.39% | |
| CHF | -0.03% | -0.03% | -0.01% | -0.08% | 0.00% | 0.15% | 0.39% |
The heat map is structured so that the base currency is selected from the left-hand column and the quote currency from the top row. For instance, choosing the euro as the base from the left and moving horizontally to the US dollar column provides the percentage change for EUR (base)/USD (quote).
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