|

EUR/JPY Price Forecast: Holds gains near 185.50 as bullish bias prevails

  • EUR/JPY could target the primary barrier at the six-week high of 186.21.
  • The 14-day Relative Strength Index near 52 indicates neutral-to-positive momentum.
  • The primary support appears at the nine-day EMA of 185.23.

EUR/JPY appreciates after registering minor losses in the previous day, trading around 185.40 during the Asian hours on Friday. The currency cross is holding a constructive bullish bias as spot remains above both the nine-day and 50-day Exponential Moving Averages (EMAs). The alignment of shorter- and medium-term EMAs below price hints at underlying demand.

Meanwhile, the 14-day Relative Strength Index (RSI) near 52 suggests moderate positive momentum without overbought conditions, allowing room for further upside if buyers retain control. Additionally, the technical analysis of the daily chart suggests the EUR/JPY cross is moving within the ascending channel pattern, suggesting an ongoing bullish bias.

The EUR/JPY cross may find the primary resistance at the six-week high of 186.21, reached on June 5. Further advances would lead the currency cross to approach the upper boundary of the ascending channel around 187.80, followed by the all-time high of 187.95, recorded on April 17.

On the downside, the EUR/JPY cross faces immediate support at its nine-day EMA of 185.23, closely followed by the 50-day EMA at 185.07. A decisive break below these moving averages would trigger a bearish shift, exposing the lower boundary of the ascending channel near 184.50. Extended downward momentum could push the pair to test its nearly four-month low of 181.87, recorded on March 16, with further declines targeting the six-month low of 180.81, reached on February 12.

EUR/JPY: Daily Chart

(The technical analysis of this story was written with the help of an AI tool.)

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.12%0.10%0.19%0.08%0.26%0.38%0.15%
EUR-0.12%-0.03%0.09%-0.03%0.14%0.25%0.03%
GBP-0.10%0.03%0.11%-0.01%0.14%0.28%0.06%
JPY-0.19%-0.09%-0.11%-0.14%0.03%0.16%-0.07%
CAD-0.08%0.03%0.00%0.14%0.17%0.29%0.07%
AUD-0.26%-0.14%-0.14%-0.03%-0.17%0.11%-0.12%
NZD-0.38%-0.25%-0.28%-0.16%-0.29%-0.11%-0.22%
CHF-0.15%-0.03%-0.06%0.07%-0.07%0.12%0.22%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Author

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

More from Akhtar Faruqui
Share:

Editor's Picks

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Week ahead: Central bank and earnings bonanza could roil markets

After joining the rate-hike club in September, the Federal Reserve looks set to stand pat in October, waiting to assess more data before deciding to hike again. Whilst this isn’t an unusual move for a central bank, it somewhat contradicts Fed Chair Kevin Warsh’s new mantra of data dependency and zero forward guidance.

CFTC Report: WTI rally runs ahead of positioning
The week in one sentence: WTI prices surged while speculative longs were cut in the week to October 20, creating the clearest price/positioning divergence. Sterling and the Canadian Dollar led the constructive currency shift, while Yen longs also rebuilt. Speculators turned less constructive on the WTI, reducing their net exposure to around 89.3K contracts.
What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.