EUR\/JPY is nearing its all-time high of 184.95, trading around 184.30. The 14-day Relative Strength Index is 61, indicating solid momentum without being overbought.<\/p>\n
The nine-day EMA surpasses the 50-day EMA, sustaining a bullish trend. Resistance is at 184.95, with the psychological level of 185.00 close by. Breaking this resistance may extend gains.<\/p>\n
Initial support is at the nine-day EMA of 183.60. Dropping below this could weaken momentum, targeting the 50-day EMA and the monthly low at 181.57.<\/p>\n
Euro (EUR) showed varied performance against major currencies. It rose by 0.17% against USD and 0.33% against JPY, while falling by 0.17% against USD and slightly adjusting against others like GBP and CAD.<\/p>\n
The EUR\/JPY is showing strong upward momentum as it approaches the key resistance level of 185.00. With the RSI still below overbought territory at 61, we believe there is potential for this rally to continue. We are looking at the nine-day EMA at 183.60 as our immediate line in the sand for this bullish trend.<\/p>\n
This technical strength is supported by fundamental factors, as the Eurozone\u2019s latest core inflation data for December 2025 came in at a persistent 2.8%, keeping pressure on the European Central Bank to maintain its firm stance. In contrast, recent Q4 2025 GDP figures from Japan showed a slight economic contraction, reinforcing the Bank of Japan’s dovish position. This growing policy divergence between the two central banks is the primary fuel for the currency pair’s climb.<\/p>\n
For those of us trading derivatives, buying call options with strike prices at or above 185.00 seems like a reasonable strategy to capitalize on a potential breakout in the next few weeks. A break below the 183.60 support level would be our signal to consider purchasing puts to hedge against a deeper correction towards 181.57. The main risk remains a rejection at the all-time high set back in December 2025.<\/p>\n
We should recall the powerful trend seen throughout the last half of 2025, which saw the interest rate differential widen significantly and reward carry trades. However, we also remember the sharp but temporary pullback in November 2025, reminding us that volatility can increase near record highs. Therefore, while the path of least resistance appears to be upward, we should manage our positions carefully as these historic levels are tested.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" EUR\/JPY nears all-time high with bullish momentum; key resistance at 185, support near 183.60.<\/p>\n","protected":false},"author":62,"featured_media":17040,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-38824","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\/38824","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=38824"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38824\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17040"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=38824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=38824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=38824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}