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EUR/JPY holds around 181.50 as downside momentum persists
The pair is below key moving averages and could retest the August 3 eight-month low at 179.37 if selling pressure continues.
EUR/JPY was trading near 181.50 during Asian hours on Tuesday after rebounding over three straight days of losses, FXStreet reports. The cross is still in a bearish near-term tone, as it remains below both the nine-day and 50-day Exponential Moving Averages.
FXStreet said the 14-day Relative Strength Index is at 32.97, hovering just above oversold territory, which it frames as a sign that downside momentum is still dominant but nearing stretched conditions. The article notes potential downside tests of the eight-month low at 179.37 reached on August 3, and a further support level at the nine-month low of 175.70.
On the upside, EUR/JPY could move toward the nine-day EMA at 183.62, then the 50-day EMA at 184.90, according to FXStreet. A stronger push above those averages would be consistent with a bullish shift, the piece adds, with room to explore the area near the all-time high of 187.95 from April 17.
FXStreet also points to positioning and policy signals, citing Rabobank commentary that JPY net shorts had climbed to their highest levels since 2024 last week, ahead of concerted intervention from Japan’s Ministry of Finance and the US Treasury to stem JPY weakness. The bank expects positioning to change in the next data release, while saying it is too early to judge whether Japan’s fundamentals have strengthened enough to support the yen versus the US dollar in the medium term.