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EUR/JPY edges higher toward 186.00 as it holds key averages
Scotiabank said positioning in yen is shifting away from summer intervention talk toward fundamentals ahead of the September 18 BoJ meeting.
EUR/JPY has risen for a second straight day, trading around 185.80 during Tuesday’s Asian session, after rebounding from the bottom of an ascending channel pattern, FXStreet reports.
Technical analysis points to continued bullish bias while the cross stays above both the nine-day and 50-day exponential moving averages. The 14-day RSI at 59.45 remains in positive territory, suggesting upside momentum is firm but not stretched.
FXStreet’s technical outlook says the pair could probe the ascending channel’s upper boundary near 187.70, ahead of the all-time high of 187.95 set on April 17. On the downside, it may retest support near 185.50, with a further check of the nine-day EMA at 185.07 and the 50-day EMA at 184.70.
A break below that confluence support zone could flip sentiment and push EUR/JPY toward its nine-month low of 179.37, recorded on August 3. FXStreet also notes Scotiabank’s view that the yen narrative is evolving as markets look to fundamentals ahead of the September 18 BoJ meeting rather than focusing on headline intervention risk.