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EUR/JPY Price Forecast: Trades near 187.00 after pulling back from ascending channel top

  • EUR/JPY may test the immediate barrier at the upper boundary of the ascending channel around 187.60.
  • The 14-day Relative Strength Index is near 64.1, indicating that upside momentum is firm.
  • The initial support lies at the nine-day EMA of 186.52.

EUR/JPY depreciates after two days of gains, trading around 187.20 during the Asian hours on Thursday. The currency cross is maintaining a bullish near-term bias as it holds above both the nine-day and 50-day Exponential Moving Averages (EMAs). The alignment of the shorter EMA above the longer one reinforces the constructive tone.

The 14-day Relative Strength Index (RSI) near 64.1 stays below overbought territory, suggesting that upside momentum remains firm but not yet overstretched. However, the daily chart technical analysis shows that the EUR/JPY cross is moving upwards within an ascending channel, indicating a strong bullish bias.

The EUR/JPY cross may test the initial resistance at the upper boundary of the ascending channel around 187.60. A successful break above the channel could support the currency cross to target the all-time high of 187.95, which was recorded on April 17.

On the downside, the EUR/JPY cross faces its primary support at the nine-day EMA of 186.52. Additional technical buffers lie just below, including the lower boundary of the rising wedge pattern near 185.70 and the 50-day EMA at 185.49, forming a tight confluence support zone. A decisive break below this critical area could trigger a bearish shift, putting notable downward pressure on the currency cross. If sellers gain control, the price may navigate toward the five-month low of 181.87, with further losses potentially targeting the seven-month low at 180.81.

Chart Analysis EUR/JPY
EUR/JPY: Daily Chart

Yen edges higher as markets await FOMC and BoJ decisions

Strategists at Scotiabank note that the Japanese Yen is holding a modest bid ahead of key central bank events, with the currency “up a fractional 0.1% vs. the USD but outperforming most of the G10 currencies in overall quiet trade as markets look to both the 2pm ET FOMC and the July 31 BoJ policy decision.” They highlight that the backdrop remains subdued, but positioning reflects a cautious tone as investors balance near-term Dollar dynamics against the upcoming BoJ meeting.

(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 New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.16%0.19%0.05%0.04%0.07%-0.19%0.22%
EUR-0.16%0.02%-0.09%-0.12%-0.11%-0.36%0.06%
GBP-0.19%-0.02%-0.11%-0.15%-0.13%-0.37%0.07%
JPY-0.05%0.09%0.11%-0.01%0.02%-0.25%0.20%
CAD-0.04%0.12%0.15%0.01%0.04%-0.23%0.21%
AUD-0.07%0.11%0.13%-0.02%-0.04%-0.24%0.17%
NZD0.19%0.36%0.37%0.25%0.23%0.24%0.47%
CHF-0.22%-0.06%-0.07%-0.20%-0.21%-0.17%-0.47%

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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