EUR/JPY Holds Bearish Tone as Sellers Defend Level

Key Moments

EUR/JPY traded around 176.90 during Asian hours on Tuesday, marking a second consecutive session of losses within a descending channel.
The 14-day RSI stood at 32.75, indicating ongoing downside pressure while hovering just above oversold territory.
Immediate support was identified near 176.00, with deeper downside levels at 175.70 and 169.72 if selling accelerates.

Technical Overview: Bearish Channel Intact

EUR/JPY extended its decline for a second straight session, trading near 176.90 during Asian hours on Tuesday. The daily chart continues to show the pair moving inside a descending channel, reinforcing a prevailing bearish technical structure.

The cross remains under pressure as it trades below both the 9-day and 50-day Exponential Moving Averages (EMAs), signaling a negative near-term bias. The recent pullback comes after the pair failed to maintain earlier gains this month. At the same time, the 14-day Relative Strength Index (RSI) at 32.75 stays just above the oversold threshold, implying that while the sell-off has become extended, sellers still retain control.

Key Support Zones: Focus on Channel Floor and Multi-Month Lows

On the downside, immediate support is seen around 176.00, near the lower boundary of the prevailing descending channel. A clear move beneath this level would draw attention to the 11-month low at 175.70, which was recorded in November 2025.

Should bearish momentum intensify and push EUR/JPY through this confluence of support, additional weakness could expose the 14-month low at 169.72, opening the door to a deeper corrective phase within the broader downtrend.

Upside Levels: EMAs and Channel Resistance in View

On the upside, the first significant resistance is located at the 9-day EMA, currently at 177.44. Above that, the 50-day EMA at 180.47 represents the next key barrier. A decisive break above both these moving averages would be required to signal a meaningful bullish reversal.

If buyers manage to reclaim these levels, EUR/JPY could then aim for the upper boundary of the descending channel near 183.90. Beyond that, the all-time high of 187.95, reached on April 17, stands as the ultimate bullish objective.

Institutional Flows: Limited Role for Japanese Investors in French Bonds

In a related cross-asset context, Commerzbank analysts noted shifts in Japanese investor behavior toward French sovereign debt. They observed that Japanese investors have been “net sellers of long-term French bonds over the past twelve months,” and that “cumulative net purchases since early 2014” have “declined noticeably since the pandemic.” At the same time, the analysts pointed out that these investors “have already returned as buyers over the past three months,” leading them to conclude that “it therefore appears unlikely that Japanese investors were responsible for, or even materially contributed to, the recent dislocations in the French bond market.”

Euro Performance Against Major Currencies

The table below summarizes the percentage change of the Euro (EUR) versus major currencies today. According to these figures, the Euro showed its weakest performance against the Japanese Yen.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.16%	-0.09%	-0.22%	-0.10%	-0.02%	-0.08%	-0.20%
EUR	0.16%		0.08%	-0.07%	0.05%	0.12%	0.08%	-0.04%
GBP	0.09%	-0.08%		-0.15%	-0.04%	0.06%	0.00%	-0.10%
JPY	0.22%	0.07%	0.15%		0.11%	0.20%	0.13%	0.03%
CAD	0.10%	-0.05%	0.04%	-0.11%		0.09%	0.02%	-0.08%
AUD	0.02%	-0.12%	-0.06%	-0.20%	-0.09%		-0.06%	-0.17%
NZD	0.08%	-0.08%	0.00%	-0.13%	-0.02%	0.06%		-0.10%
CHF	0.20%	0.04%	0.10%	-0.03%	0.08%	0.17%	0.10%

The heat map representation shows the percentage change of each base currency (left column) against each quote currency (top row). For instance, selecting the Euro from the left column and moving horizontally to the US Dollar cell provides the EUR (base)/USD (quote) percentage change.