Key Moments
- EUR/JPY trades around 177.50 in Asian hours on Monday after opening with a bearish gap and staying in negative territory.
- The pair is hovering just above the nine-day EMA at 177.40, with the 14-day RSI near 41 signaling muted buying interest.
- Key resistance is located at the 50-day EMA of 180.01, while downside levels include 175.70 and 169.72.
Technical Overview
EUR/JPY is trading around 177.50 during Asian hours on Monday, having opened with a bearish gap and remaining under pressure. On the daily chart, the cross continues to move within a descending channel pattern, reinforcing a downside bias.
The pair is trading below its 50-day Exponential Moving Average (EMA), which is capping attempts to recover. At the same time, EUR/JPY is trying to find support just above the nine-day EMA, pointing to short-term consolidation within an overall corrective move. The 14-day Relative Strength Index (RSI), hovering around 41, reflects weak momentum rather than a strong rebound.
Key Technical Levels
On the downside, immediate support is seen at the nine-day EMA at 177.40. A break of this level could bring the lower boundary of the descending channel into focus, near the 11-month low of 175.70, which was registered in November 2025. A decisive move below this confluence area could pave the way for a deeper decline toward the 14-month low at 169.72.
On the upside, the initial barrier is the 50-day EMA at 180.01. A sustained move above this medium-term average would signal a bullish reversal, potentially allowing EUR/JPY to retest the upper edge of the descending channel around 183.60. Beyond that, attention would shift to the all-time high at 187.95, recorded on April 17.
| Level | Description | Value |
|---|---|---|
| Current price area | Trading level during Asian hours on Monday | 177.50 |
| Immediate support | Nine-day EMA | 177.40 |
| Channel support | Lower boundary / 11-month low (November 2025) | 175.70 |
| Deeper support | 14-month low | 169.72 |
| Primary resistance | 50-day EMA | 180.01 |
| Channel resistance | Upper boundary of descending channel | 183.60 |
| Major resistance | All-time high (April 17) | 187.95 |
Policy Signals from the Bank of Japan
Analysts at MUFG point to a further hawkish tilt at the Bank of Japan (BoJ). They note that in Japan, Bank of Japan Board Member Junko Koeda has “reinforced the case for further tightening,” delivering what they describe as “a more explicit warning against excessive caution than in her previous speech.” According to their assessment, her latest comments emphasize the central bank’s increasing willingness to continue normalizing policy.
EUR/JPY Daily Chart Context
The EUR/JPY daily setup reflects a market constrained by its descending channel, with prices capped below the 50-day EMA and attempting to consolidate above the nine-day EMA. The configuration suggests that directional conviction may depend on whether the pair breaks the nearby support at 177.40 or clears the resistance at 180.01.
The technical analysis of this story was prepared with the assistance of an AI tool. Know more.
Euro FAQs
What is the Euro?
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day.
EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% of all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
What is the ECB and how does it impact the Euro?
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy.
The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa.
The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
How does inflation data impact the value of the Euro?
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control.
Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
How does economic data influence the value of the Euro?
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency.
A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall.
Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
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