EUR/JPY Price Forecast: Trades below 177.50 after pulling back from descending channel top
- EUR/JPY may test the primary support at the nine-day EMA of 176.78.
- The 14-day Relative Strength Index of 49.37 signals neutral momentum.
- The primary barrier lies at the upper boundary of the descending channel near 178.00.
EUR/JPY depreciates after two days of gains, trading around 177.40 during Asian hours on Wednesday. The technical analysis of the daily chart suggests that the currency cross is remaining within a descending channel pattern, indicating a prevailing bearish bias.
The EUR/JPY cross is holding between the short-term and medium-term Exponential Moving Averages (EMAs) and leaving the near-term tone neutral but slightly capped. The nine-period EMA sits just below price as immediate support, while the 50-period EMA acts as the first notable topside barrier overhead. The 14-day Relative Strength Index (RSI) at 49.37 is parked near the midline, hinting at balanced momentum after the recent rebound from the mid-175s.
The EUR/JPY cross may find the initial support at the immediate support at the nine-day EMA of 176.78, followed by the 12-month low of 175.07, reached on October 30. Further support lies at the lower boundary of its descending channel around 174.30. A break below the channel would open the door for the currency cross to navigate the region around the 15-month low at 169.72.
On the upside, the EUR/JPY cross may test the initial barrier at the upper boundary of the descending channel near 178.00, followed by the 50-day EMA of 178.70. A successful break above the medium-term price average would cause a bullish reversal, supporting the EUR/JPY cross to explore the area around the all-time high of 187.95, reached on April 17.
Yen policy vigilance rises as Japan signals readiness to step in
Analysts at Commerzbank highlight growing policy vigilance in Japan, noting that Finance Minister Satsuki Katayama has "signaled readiness to intervene in currency markets if movements become disorderly." This stance underscores the authorities’ sensitivity to potential bouts of excessive Yen volatility and reinforces the perception that policymakers are prepared to act should market dynamics turn destabilising.
Yen steadies as Japan signals readiness to curb speculative moves
Analysts at Commerzbank highlight that Japan’s Finance Minister Satsuki Katayama struck a notably firm tone on recent Yen moves, warning that “If there are disorderly movements or excessively speculative moves, we will take action.” The bank notes that this explicit intervention threat underscores heightened official sensitivity to FX volatility and reinforces the perception that authorities stand ready to respond if JPY price action becomes destabilising.
(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 weakest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.32% | -0.26% | -0.49% | -0.24% | -0.17% | 0.26% | -0.47% | |
| EUR | 0.32% | 0.06% | -0.16% | 0.06% | 0.14% | 0.57% | -0.15% | |
| GBP | 0.26% | -0.06% | -0.23% | 0.02% | 0.10% | 0.51% | -0.21% | |
| JPY | 0.49% | 0.16% | 0.23% | 0.24% | 0.31% | 0.72% | 0.00% | |
| CAD | 0.24% | -0.06% | -0.02% | -0.24% | 0.07% | 0.49% | -0.23% | |
| AUD | 0.17% | -0.14% | -0.10% | -0.31% | -0.07% | 0.41% | -0.30% | |
| NZD | -0.26% | -0.57% | -0.51% | -0.72% | -0.49% | -0.41% | -0.71% | |
| CHF | 0.47% | 0.15% | 0.21% | -0.01% | 0.23% | 0.30% | 0.71% |
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
FXStreet
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.
