- EUR/JPY edges lower to 162.75 amid the fear of FX intervention from the Bank of Japan (BoJ).
- The cross keeps the negative outlook below the key EMA; RSI indicator lies in bearish territory.
- The first upside barrier will emerge at 163.15; the first downside target is located at 162.65.
The EUR/JPY cross loses momentum near 162.75 during the early European trading hours on Tuesday. The growing speculation that the Bank of Japan (BoJ) will intervene in the foreign exchange market might support the Japanese Yen (JPY) in the near term. Early Tuesday, Japanese Finance Minister Shunichi Suzuki said that he will not rule out any steps to respond to disorderly moves and that he will monitor foreign exchange (FX) moves with a high sense of urgency.
From a technical perspective, the bearish outlook of EUR/JPY remains intact as the cross is below the 50- and 100-period Exponential Moving Averages (EMA) on the four-hour chart. The Relative Strength Index (RSI) lies in bearish territory around 36.40, supporting the sellers for the time being.
The first upside barrier for EUR/JPY will emerge near the 100-period EMA at 163.15. Further north, the next target is seen at the 50-period EMA at 163.32. A decisive break above the latter will expose the upper boundary of the Bollinger Band at 163.58. Any follow-through buying above this level would sustain its bullish move to a high of March 27 at 164.41.
On the flip side, the lower limit of the Bollinger Band at 162.65 acts as an initial support level for the cross. The key contention level is located at the 162.00 mark, representing a low of March 19 and a psychological level. A breach below 162.00 will see a drop to a low of March 14 at 161.10.
EUR/JPY four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops to three-week lows near 1.0790
The Greenback is picking up extra upside impulse and is dragging EUR/USD to the area of multi-week lows around 1.0790, a region also coincident with the provisionbal 100-week SMA.
GBP/USD remains offered, challenges the 1.2900 support
GBP/USD now reverses its initial uptick and puts the key 1.2900 contention zone to the test amid further buying interest in the US Dollar on Monday.
Gold nears $3,000 amid tariffs’ optimism
The intense march north in the Greenback, in combination with the marked rebound in US yields across the curve are prompting Gold prices to recede to the proximity of the critical $3,000 mark per troy ounce.
Crypto morning: Bitcoin's bullish surge, Fidelity's Ethereum leap, Trump-backed WLF's $3M MNT buy
Bitcoin traders are reacting positively to the US Federal Reserve’s (Fed) policy shift. As BTC hovers around the $88,000 level on Monday, analysts are optimistic about Bitcoin price gains this week. Technical analysis supports Bitcoin’s bullish thesis.
Seven Fundamentals for the Week: Tariff news, fresh surveys, the Fed's preferred inflation gauge are eyed Premium
Reports and rumors ahead of Trump’s reciprocal tariffs announcement next week will continue moving markets. Business and consumer surveys will try to gauge where the US economy is heading. Core PCE, the Fed's preferred inflation gauge, is eyed late in the week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.