EUR/JPY Price Forecast: Gains traction above 185.00, bullish signals keep uptrend intact

The EUR/JPY currency pair gained momentum above the 185.00 level during the early European trading session on Thursday, maintaining an uptrend. Japanese Gross Domestic Product (GDP) data for Q2 released on Thursday showed weaker-than-expected growth, expanding by 0.3% compared to the 0.5% growth forecast. The Bank of Japan (BoJ) was under scrutiny for a potential interest rate hike as early as September 2026, which could help curb the Yen's decline.

Traders kept a close eye on Japan's National Consumer Price Index (CPI) inflation report scheduled for publication on Friday. EUR/JPY exhibited a bullish near-term bias as the exchange rate held above both the 100-day simple moving average and the 20-day Bollinger middle band, indicating underlying demand during dips. Immediate resistance was noted at the June 17 high of 186.32, with the next target at the upper Bollinger Band around 187.50.

On the downside, support lay at the 100-day SMA at 185.10, followed by the Bollinger middle band near 184.00. If the price fell further, the August 10 low of 182.70 and lower Bollinger Band at 180.55 could be tested.