Insights 
VT 
Support And Resistance Levels
EUR/JPY trades near 176.50 amidst a bullish trend. The daily chart indicates a bullish bias within an ascending channel pattern, with the cross staying above the nine-day Exponential Moving Average (EMA).
The 14-day Relative Strength Index (RSI) remains over the 50 mark, reinforcing the bullish perspective. The initial resistance is the record high of 177.94, set on October 9, with a possible move to 179.00 if the price breaks above this level.
Support lies at the ascending channel’s lower boundary, near 176.00, with the nine-day EMA at 175.79 offering further support. A fall below this could lead to a move towards 173.50 – the 50-day EMA, and then to the six-week low of 172.14, seen on September 9.
The Euro’s current performance against other major currencies shows a percentage change displaying Euro as strongest against the Swiss Franc. Euro has varied performance against different currencies such as USD, GBP, JPY, and others, with some positive and negative movements reported.
These analyses provide insights into EUR/JPY’s possible trajectory amidst ongoing market conditions and currency performance dynamics.
Trading Strategies And Risk Management
Given the persistent bullish bias in EUR/JPY, we are looking at strategies that capitalize on continued upward momentum. The pair is holding strong within an ascending channel, and the Relative Strength Index is above 50, which supports a bullish outlook. Therefore, we should consider buying call options or selling put spreads to benefit from a potential test of the recent all-time high.
This view is strengthened by fundamental factors supporting the Euro. The latest German ZEW Economic Sentiment survey, released last week on October 7, 2025, showed a surprising jump to 14.8, beating forecasts and suggesting renewed confidence in the Eurozone’s core economy. This gives us more conviction that the Euro leg of the pair has fundamental support for further gains in the coming weeks.
On the other side of the trade, the Japanese Yen remains weak due to the Bank of Japan’s policy. Last week, BoJ officials reiterated their commitment to an accommodative stance, especially as Japan’s national core CPI for August 2025 came in at a modest 1.7%, still below their target. This stark policy divergence with the European Central Bank continues to pressure the Yen.
For our derivatives strategy, we are focusing on call options with strike prices near the 177.94 record high, with expirations in late October or early November 2025. If that level is broken, the next logical target is the psychological 179.00 level. We see the current price action as an opportunity to enter bullish positions before the next leg up.
We must also manage risk by watching the support level around 176.00, which marks the lower boundary of the ascending channel. A firm break below this zone would signal that the bullish momentum is fading, prompting us to unwind our long positions. Traders could consider buying protective puts with a strike below 175.75 as a hedge against a sudden reversal.
This market dynamic is reminiscent of the prolonged trend we observed back in 2023 and 2024, when the interest rate differential between Europe and Japan was a primary driver of EUR/JPY strength. The current setup suggests a continuation of that theme. As long as this fundamental policy gap exists, the path of least resistance for the pair appears to be upward.
