Key Moments
- EUR/JPY traded around 181.50 after rebounding from the lower boundary of a descending channel near 180.70.
- The pair stayed below its nine- and 50-day EMAs, while the 14-day RSI hovered just above 30, signaling persistent bearish momentum.
- Scotiabank strategists noted a sharp Yen rebound of 1.5% against the USD, fueling renewed speculation about potential official intervention.
EUR/JPY Technical Setup: Bearish Channel Intact
EUR/JPY recovered modestly after two consecutive daily declines, trading around 181.50 during Asian market hours on Friday. Analysis of the daily chart shows the cross still moving within a descending channel, reinforcing a broadly bearish technical backdrop.
Despite the latest bounce, EUR/JPY continues to exhibit a negative short-term tone as it remains below both the nine-day and 50-day Exponential Moving Averages (EMAs). Price action has retreated from recent peaks and is now capped by this cluster of dynamic resistance levels. At the same time, the 14-day Relative Strength Index (RSI) is holding just above the 30 mark, pointing to ongoing downside pressure even as conditions edge toward oversold territory.
Key Support Levels and Downside Risk
On the downside, immediate technical support is located near the lower boundary of the descending channel around 180.70. A decisive break beneath this channel floor would intensify the bearish bias and could open the way toward the zone around the nine-month low at 179.37, which was registered on August 3.
Upside Targets and Resistance Zones
If buyers regain control, the first upside hurdle is seen at the nine-day EMA around 183.74. A move through this level would bring the 50-day EMA at 184.56 into focus as the next resistance. Beyond that, additional supply is expected near the upper boundary of the descending channel around 185.80.
A clear breakout above the channel top would mark a significant technical shift and could pave the way for a move toward the all-time high at 187.95, which was reached on April 17.
Yen Strength Revives Intervention Speculation
Yen dynamics remain an important backdrop for EUR/JPY. Strategists at Scotiabank emphasized the scale of the latest Japanese currency move against the Dollar, stating that “the yen is up a shocking 1.5% vs. the USD, building on Wednesday’s impressive gains that sparked renewed speculation around the possibility of official intervention.”
They added that the most recent leg higher in the Yen extends the currency’s current strengthening phase and is amplifying market discussion that Japanese policymakers could be moving closer to direct action if exchange rate volatility is viewed as excessive.
(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 summarizes the percentage change of the Euro (EUR) versus major currencies today. According to the data, the Euro showed its strongest relative performance against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.00% | -0.03% | 0.20% | -0.03% | -0.08% | -0.29% | 0.07% | |
| EUR | 0.00% | -0.04% | 0.20% | 0.00% | -0.10% | -0.26% | 0.07% | |
| GBP | 0.03% | 0.04% | 0.23% | 0.04% | -0.05% | -0.23% | 0.10% | |
| JPY | -0.20% | -0.20% | -0.23% | -0.21% | -0.30% | -0.48% | -0.15% | |
| CAD | 0.03% | -0.00% | -0.04% | 0.21% | -0.28% | 0.07% | ||
| AUD | 0.08% | 0.10% | 0.05% | 0.30% | 0.09% | 0.15% | ||
| NZD | 0.29% | 0.26% | 0.23% | 0.48% | 0.28% | 0.18% | 0.33% | |
| CHF | -0.07% | -0.07% | -0.10% | 0.15% | -0.07% | -0.15% | -0.33% |
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