The EUR/JPY exchange rate continues to demonstrate upward momentum, trading around 176.15 during the early hours of the European trading session. The cross remains comfortably above the 100-day Exponential Moving Average, a key technical indicator supporting the current bullish outlook. Additionally, the Relative Strength Index (RSI) remains near 59.30, indicating sustained positive momentum rather than overbought conditions, which suggests room for further gains in the near term.
Near-term resistance levels are identified in the 176.90-177.00 range, a zone that previously marked the high achieved on October 13 and coincides with a significant psychological threshold. A daily close above this zone could accelerate the gain trajectory toward the 178.00 level, which aligns with the upper boundary of volatility bands and marks a round number that traders often watch. Beyond that, resistance could extend to approximately 178.50, further indicating the market’s bullish inclination.
On the downside, initial support can be observed at 175.36, the low recorded on October 14. A decisive move below this level could trigger a correction toward 175.05, the high from late September, or even retest recent lows around 173.70. Such a move would signal a potential shift in short-term market sentiment, though current technical signals favor a continued upward bias.
The Japanese Yen remains under pressure, reflecting internal political uncertainty and evolving monetary policy signals from the Bank of Japan. While the BoJ’s ultra-loose monetary stance over recent years has contributed to Yen depreciation, recent indications of the bank possibly delaying policy adjustments are offering some support to the currency. The Yen’s value is heavily influenced by the differential in bond yields between Japan and the United States, with a widening gap typically favoring USD against JPY. The Yen also serves as a safe-haven asset, often appreciating during market turbulence as investors seek safety amid geopolitical or economic instability.
These dynamics underscore the complex interplay of macroeconomic policies, investor sentiment, and technical factors shaping the current EUR/JPY trajectory.
