- EUR/JPY weakens to around 182.35 in Thursday’s early European session.
- The cross retains a mildly bullish bias above the key 100-day EMA.
- The first upside barrier emerges at 183.15; the initial support level is seen at 181.20.
The EUR/JPY cross loses traction to near 182.35 during the early European session on Thursday. The Japanese Yen (JPY) edges higher against the Euro (EUR) as rising geopolitical tensions in the Middle East drive investors toward safe-haven assets.
Furthermore, BoJ Governor Kazuo Ueda reaffirmed a commitment to a potential interest rate hike despite Middle East instability, though markets widely anticipate the Japanese central bank to stand pat at its March meeting.
The Eurozone Retail Sales will be the highlight later on Thursday. Economists expect a rise of 1.7% for the month of January. If the reports come in stronger than expected, this could lift the Euro against the JPY in the near term.
Technical Analysis:
In the daily chart, the broader setup of EUR/JPY retains a mildly bullish bias as price holds well above the rising 100-day exponential moving average, keeping the medium-term uptrend intact despite the pullback from recent highs around 185. The pair has slipped back into the upper half of its Bollinger structure after failing to extend above the upper band near 185.75, signalling easing upside momentum rather than a trend break. RSI around 44 shows momentum has cooled into neutral territory, consistent with a corrective phase within a still-positive underlying structure rather than outright bearish control.
Initial resistance emerges at the Bollinger middle band near 183.15, where the latest consolidation has stalled, followed by the recent swing high at 184.70 and then 185.70. A daily close back above 183.15 would ease immediate downside pressure and open a retest of 184.70. On the downside, immediate support stands at the 100-day EMA near 181.20. A break below this level would weaken the prevailing bullish bias and expose deeper support toward 179.80, where prior Bollinger lower-band interaction suggests stronger dip-buying interest.
