Insights 
VT 
Euro’s Performance Against Other Currencies
The EUR/JPY tests primary support at the nine-day EMA of 175.87, matching the channel’s lower boundary near 175.80. Falling below this support could shift the bias to negative, pressing towards the 50-day EMA at 173.59 and a six-week low of 172.14 from September 9.
The table below outlines the Euro’s performance against other major currencies, indicating it was weakest against the Australian Dollar. Percent changes are noted for various currencies against the USD, EUR, GBP, JPY, CAD, AUD, NZD, and CHF, displaying fluctuations in market performance.
The EUR/JPY is showing strength around the 176.00 level, and the technical picture suggests more upside may be coming. We see the pair is holding within an ascending channel, and the Relative Strength Index is above 50, which points to a bullish bias. This suggests that for now, the path of least resistance is upwards.
Given this momentum, we should consider buying call options with strike prices above the recent all-time high of 177.94. If the pair breaks this level, which was hit just last week on October 9, the next logical target appears to be around the 180.60 mark. This strategy bets on the current trend continuing in the coming weeks.
European Central Bank and Bank of Japan Stance
However, we need to watch the 175.87 level very closely, as this is the nine-day moving average and a key support line. A firm break below this could signal that the bullish momentum is fading, putting the pair under pressure. To hedge against this, we could buy protective put options with a strike price just below 175.80.
This upward pressure is supported by the European Central Bank’s current stance, as officials like Dolenc see no reason to change rates soon. Looking back at the data from September 2025, we saw Eurozone inflation cool to 2.1%, reinforcing the idea that the ECB will remain on hold and not look to cut rates yet. This keeps the Euro relatively attractive.
On the other side of the trade, the Yen remains weak because the Bank of Japan has given no signal of a major policy shift. Japan’s own core inflation figures for September 2025 were reported at just 1.8%, which gives the BoJ little reason to start aggressively raising interest rates. This wide gap in policy between the ECB and BoJ is what has been driving this pair higher for much of 2025.
