EUR\/JPY has decreased for the third consecutive session, trading around 183.70. The currency cross stays within an ascending channel, showing a bullish trend. The 14-day Relative Strength Index is at 62.20, indicating positive momentum, with support above the nine-day and 50-day Exponential Moving Averages.<\/p>\n
The short-term average exceeds the medium-term gauge, favouring potential upward movement. The EUR\/JPY could rise towards 184.95, recorded on December 22, which aligns with the psychological level of 185.00. Breaking beyond this could allow the currency pair to test the upper boundary of approximately 185.70.<\/p>\n
Immediate support is located at the nine-day EMA of 183.37 and then at the lower ascending channel boundary. Falling below this channel could shift the bias downward, possibly testing a two-week low of 181.57, seen on December 17. Further decreases might target the area near the 50-day EMA at 180.15.<\/p>\n
In a currency performance table, the Euro shows overall weakness, particularly against the Japanese Yen. The data reveals a percentage change with the Euro decreasing against several major currencies while the Yen gained across the board, with changes displayed for various currency pairings.<\/p>\n
The EUR\/JPY is currently experiencing a minor pullback after a strong run, but the overall trend remains firmly upward. This dip toward the 183.50 level could be an opportunity for us to enter long positions. The underlying technicals, like the moving averages, still point to a bullish market structure.<\/p>\n
Fundamentally, the divergence between central banks continues to drive this pair higher. We just saw the European Central Bank hold its interest rate at 3.25% this month, citing core inflation that remains stubbornly above its target. In contrast, the Bank of Japan has maintained its negative interest rate policy, showing no immediate sign of tightening.<\/p>\n
This interest rate difference makes holding the Euro more profitable than the Yen, fueling the carry trade that has pushed the pair to all-time highs. Eurozone flash inflation for November came in at 2.8%, which is still high enough to keep the ECB from cutting rates soon. This environment supports further strength in the EUR\/JPY.<\/p>\n
For the coming weeks, we can consider buying call options with a strike price around the recent high of 185.00. This strategy allows us to profit from a potential rebound toward new highs while limiting our risk. The key is to watch if the price holds above the immediate support level of 183.37.<\/p>\n
However, we must remain cautious about potential intervention from Japanese authorities to strengthen the Yen. We saw them step into the market several times back in 2024 when the currency weakened significantly. A sudden announcement from the Bank of Japan or Ministry of Finance is the primary risk to this bullish outlook.<\/p>\n
If the pair breaks decisively below the ascending channel, it would signal a weakening of momentum. In that scenario, buying put options could protect against a deeper correction toward the 181.50 level. This would indicate that the current dip is more than just a brief pause in the uptrend.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" EUR\/JPY maintains bullish trend within ascending channel; eyes 185.00 amid strong momentum and technical support.<\/p>\n","protected":false},"author":62,"featured_media":17049,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-37688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/37688","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=37688"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/37688\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17049"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=37688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=37688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=37688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}