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EUR/JPY Price Forecast: Rises toward 186.00 after rebounding from ascending channel bottom

  • EUR/JPY could rise toward the upper boundary of the ascending channel around 187.70.
  • With the 14-day Relative Strength Index at 59.45, bullish momentum remains strong without entering overbought territory.
  • Immediate support rests at the lower boundary of the ascending channel around 185.50.

EUR/JPY appreciates after two days of gains, trading around 185.80 during the Asian hours on Tuesday. Technical analysis of the daily chart indicates the currency cross remains within the ascending channel pattern, signaling an ongoing bullish bias.

The EUR/JPY cross is maintaining a bullish near-term tone as it holds above both the nine-day and 50-day Exponential Moving Averages (EMAs). The 14-day Relative Strength Index (RSI) at 59.45 stays in positive territory, suggesting firm but not overstretched upside momentum.

The EUR/JPY cross may explore the upper boundary of the ascending channel around 187.70, followed by the all-time high of 187.95 set on April 17.

On the downside, the EUR/JPY cross may test the immediate support at the lower boundary of the ascending channel around 185.50, followed by the nine-day EMA of 185.07 and the 50-day EMA at 184.70. A break below this confluence support zone may cause the bearish reversal, potentially pressing the currency cross down toward its nine-month low of 179.37, recorded on August 3.

Yen focus shifts from intervention to BoJ fundamentals

Strategists at Scotiabank observe that the recent Yen narrative is evolving, with markets moving away from the summer’s emphasis on official action. They note that “the market narrative appears to be shifting from the official intervention that dominated through much of the summer,” with participants “now tightening their focus on fundamentals into the September 18 BoJ meeting.” This refocusing on underlying drivers, rather than headline intervention risk, is increasingly shaping positioning in JPY ahead of the policy decision.

Chart Analysis EUR/JPY

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

Euro Price Today

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

USDEURGBPJPYCADAUDNZDCHF
USD0.06%0.04%0.14%0.09%0.02%0.02%0.16%
EUR-0.06%-0.02%0.11%0.03%-0.04%-0.07%0.10%
GBP-0.04%0.02%0.13%0.05%-0.01%-0.04%0.12%
JPY-0.14%-0.11%-0.13%-0.07%-0.14%-0.17%0.00%
CAD-0.09%-0.03%-0.05%0.07%-0.07%-0.09%0.07%
AUD-0.02%0.04%0.00%0.14%0.07%-0.02%0.10%
NZD-0.02%0.07%0.04%0.17%0.09%0.02%0.16%
CHF-0.16%-0.10%-0.12%-0.00%-0.07%-0.10%-0.16%

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.

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