EUR/JPY bulls charge ahead on dovish BoJ meeting
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EUR/JPY extends 2025 uptrend after rebounding from the 20-SMA.
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Technical signals favor the bulls; another positive close needed.
EUR/JPY drifted higher following a relatively dovish Bank of Japan (BoJ) policy meeting on Thursday, which kept interest rates unchanged as widely expected but provided no clarity on the timing of potential rate hikes. Governor Ueda remains cautious amid ongoing uncertainties, including a shifting political landscape.
With the upcoming European Central Bank (ECB) rate decision in the spotlight, the pair extended its uptrend – initiated in February – to a new 35-year high of 178.40, strongly supported by the protective 20-day simple moving average (SMA) near 176.60.
Given that the RSI and stochastic oscillator are still fluctuating near overbought levels, a short-term pullback cannot be ruled out. Still, if the bulls manage to secure another higher close, the rally could next target the 161.8% Fibonacci extension of the latest pullback near 179.85 or even test the upper boundary of the bullish channel around 181.40.
If selling pressure drives the price below the 20-day SMA, initial support could emerge from the 50-day SMA and the channel’s lower boundary near 175.00. Further declines from there could retest the 172.30–173.00 support zone, ahead of the 171.00 psychological level.
Overall, EUR/JPY maintains a bullish bias, and another positive close above Monday’s high could open the door for further upside.
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