EUR\/JPY posted a second straight day of gains, changing hands near 184.90 in Asian trade on Monday. The cross is consolidating above its nine-day and 50-day Exponential Moving Averages (EMAs), clustered in the mid-184s, which frames a nearby demand zone. Momentum indicators are steady: the 14-day Relative Strength Index (RSI) is sitting close to 50, pointing to neutral conditions that could still accommodate further upside while those trend measures hold.<\/p>\n
Even so, the daily chart keeps the pair within a descending channel, leaving the broader technical bias tilted to the downside despite the recent bounce. Resistance is seen around 185.10 at the channel\u2019s upper boundary, and a move beyond it would open the way towards the record high at 187.95 set on April 17. On the downside, support is located at the 50-day EMA of 184.85 and then the nine-day EMA at 184.79; a break beneath both would bring the three-month low of 181.87 from March 16 into view, followed by the five-month low of 180.81 marked on February 12.<\/p>\n
Given the EUR\/JPY is trading around 184.90, we are at a critical decision point. The pair shows some immediate strength by holding above key moving averages, but it remains trapped within a broader descending channel. This suggests a conflict between short-term buying pressure and a more persistent downtrend.<\/p>\n
We are watching the 185.10 level, which marks the top of this channel, as the primary trigger for a bullish play. Recent inflation data from the Eurozone surprised slightly to the upside last week, coming in at 2.6% for April, which might give the euro a short-term boost. If we see a daily close above 185.10, we will consider buying call options targeting the April high near 187.95.<\/p>\n
Conversely, failure to break that resistance, followed by a slip below the 184.79 support level, would confirm the downtrend’s continuation. The Bank of Japan’s minutes from its May meeting showed a growing discussion about accelerating policy normalization, which could strengthen the yen in the coming weeks. A break below support would lead us to purchase put options, with an initial target around the March low of 181.87.<\/p>\n
The Relative Strength Index is sitting near 50, indicating a lack of strong momentum in either direction right now. Implied volatility for one-month EUR\/JPY options has settled around 8.5%, reflecting this indecision in the market. Therefore, we are maintaining smaller position sizes until a decisive break of either the channel resistance or the moving average support occurs.<\/p>\n","protected":false},"excerpt":{"rendered":"
EUR\/JPY gains near 184.90; above key EMAs but in descending channel, watching 185.10 breakout or 184.79 break.<\/p>\n","protected":false},"author":103,"featured_media":17043,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[86,56,88,19,45],"class_list":["post-53902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates","tag-eur","tag-euro","tag-japan","tag-trading","tag-yen"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t