- EUR/JPY trades with mild losses near 183.90 in Tuesday’s early European session.
- Broader uptrend remains intact above the 100-day EMA, but further consolidation cannot be ruled out in the near term.
- The initial support level is seen at 183.40; the first upside barrier to watch is 185.00.
The EUR/JPY cross posts modest losses around 183.90 during the early European session on Tuesday. The Japanese Yen (JPY) strengthens against the Euro (EUR) as rising geopolitical tensions in the Middle East boost the safe-haven demand. Additionally, hawkish remarks from the Bank of Japan (BoJ) policymakers contribute to the JPY’s upside.
Traders await the preliminary reading of the Harmonized Index of Consumer Prices (HICP) from the Eurozone, which is due later on Tuesday. Any signs of hotter inflation in the bloc could lift the EUR against the JPY in the near term.
Technical Analysis:
In the daily chart, EUR/JPY turns mildly bearish in the near-term as price slips back toward the 183.25–183.50 area after failing to extend gains above the recent highs near 186.00. Daily closes remain above the 100-day exponential moving average around 181.20, keeping the broader uptrend intact, but the flattening of the Bollinger midline near 183.40 and price oscillation around it signal fading upside momentum. The RSI hovers in the low-50s after backing off from stronger readings, indicating waning bullish pressure rather than outright selling strength.
Initial support emerges around the Bollinger midline and recent reaction lows at 183.40, followed by stronger support at 182.50 and then the 100-day EMA near 181.20, where the broader bullish structure would be tested. On the upside, immediate resistance stands at 185.00, with a break exposing 186.00 and then the upper Bollinger Band near 186.25. As long as EUR/JPY holds below 185.00, the risk favors further consolidation or a drift toward 182.50, while a daily close back above 186.00 would revive the broader bullish trend.
