Key Moments
- EUR/JPY has been declining for a second straight session, trading near 177.50 while staying inside a descending channel.
- Momentum indicators are subdued, with the 14-day Relative Strength Index hovering around 41 and spot prices below both the nine- and 50-day EMAs.
- Key support sits at the 12-month low of 175.70, while resistance begins at the nine-day EMA at 177.52 and extends toward the 50-day EMA at 179.74.
EUR/JPY Technical Overview
EUR/JPY extended its decline for a second consecutive session, trading around 177.50 during Asian hours on Thursday. The daily chart indicates that the cross remains confined within a descending channel, pointing to a persistent bearish structure.
In the near term, the pair continues to exhibit a negative tone as prices remain capped beneath both the nine- and 50-period Exponential Moving Averages (EMAs). These moving averages now act as layered resistance above the market. The 14-day Relative Strength Index (RSI) is holding close to 41, reflecting muted momentum and supporting the view that current price action is a corrective consolidation within a broader downside phase rather than the start of a robust recovery.
Key Support and Resistance Levels
On the downside, the immediate area of interest is the primary support at the 12-month low of 175.70, which was posted in November 2025. A subsequent support level is aligned with the lower boundary of the descending channel, located around 175.10. A break beneath this combined support zone would expose the cross to the region surrounding the 15-month low at 169.72.
On the upside, the first notable resistance is the nine-day EMA at 177.52. Above that, the upper edge of the descending channel near 178.80 forms the next technical hurdle. Additional resistance is seen at the 50-day EMA, positioned at 179.74. A decisive move above this confluence of resistance levels would signal a bullish reversal and could pave the way for a move toward the area around the all-time high of 187.95, which was registered on April 17.
Policy Signals and Yen Sentiment
Himino flags AI-driven inflation risks, keeping Yen bulls alert.
FXS Speechtracker scores this speech at 8.2, exactly in line with Himino’s historic average, underscoring a consistently firm tone as strong AI-related demand lifts capex and exports while underlying inflation nears the 2% target. The emphasis that underlying inflation is likely to align with the Bank of Japan goal, alongside rising medium- and long-term inflation expectations, reinforces a narrative that the disinflation phase is largely behind Japan.
Himino highlights that financial conditions remain accommodative, real interest rates are low, and bank lending is expanding rapidly, a combination that heightens concern about upside price risks. The warning that postponing policy changes could trigger inflation risks and damage the economy, coupled with the assertion that suitable monetary policy is needed to secure stable prices and sustainable growth, marks a clearly hawkish tilt that should support the Yen on expectations of a gradual normalization path.
(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) against major currencies today. Euro was the weakest versus the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.17% | -0.07% | -0.22% | -0.10% | 0.12% | 0.12% | -0.20% | |
| EUR | 0.17% | 0.09% | -0.05% | 0.07% | 0.27% | 0.28% | -0.06% | |
| GBP | 0.07% | -0.09% | -0.13% | -0.04% | 0.19% | 0.17% | -0.14% | |
| JPY | 0.22% | 0.05% | 0.13% | 0.10% | 0.33% | 0.30% | 0.00% | |
| CAD | 0.10% | -0.07% | 0.04% | -0.10% | 0.23% | 0.25% | -0.09% | |
| AUD | -0.12% | -0.27% | -0.19% | -0.33% | -0.23% | -0.02% | -0.32% | |
| NZD | -0.12% | -0.28% | -0.17% | -0.30% | -0.25% | 0.02% | -0.29% | |
| CHF | 0.20% | 0.06% | 0.14% | -0.00% | 0.09% | 0.32% | 0.29% |
The heat map shows percentage changes of major currencies against each other. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, choosing the Euro from the left column and moving horizontally to the US Dollar cell displays the percentage change for EUR (base)/USD (quote).
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