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EUR/JPY holds near 185.6 as intervention fears cap gains
The cross is trading around 185.59, after bouncing from the 182.00 area following a three-day period when US and Japan coordinated intervention remained a concern.
EUR/JPY was flat on Monday, trading around 185.59 as traders hesitated to push the pair higher amid fears of possible Japanese intervention. The outlook remains cautious even though intervention had stayed shut following coordinated action by the US and Japan.
After easing from about 187.44 toward 182.12 during the three-day intervention day, the pair rebounded and rallied back toward the 186.00 area. FXStreet said momentum has shifted modestly bullish, with the Relative Strength Index turning bullish since mid-August.
From a technical view, the market is neutrally biased, but EUR/JPY could resume higher if it clears the year high near 188.00, with near-term resistance at 187.00 and the psychological 187.50.
On the downside, FXStreet pointed to support around the 100-day simple moving average near 185.14, then the 50-day SMA around 184.72, followed by the 200-day SMA near 184.16 and the 184.00 level.