EUR/JPY Price Forecast: Bulls struggle at 187 amid intervention fears
The EUR/JPY trades horizontally on Monday as market participants remain reluctant to push the cross higher amid fears of potential intervention by Japanese authorities, even though they have remained shut following the coordinated action by the US and Japan.
EUR/JPY hovers near 186.00 on Monday, struggling for upward momentum as Japanese authorities may intervene to support the currency. After a dramatic drop from 187.44 to 182.12 during the three-day intervention period, the cross has bounced back to the 186.00 level. The momentum shift is slight, with the Relative Strength Index (RSI) remaining bullish since mid-August.
From a structural standpoint, EUR/JPY is neutral, but it could resume an uptrend if it breaks above the year-high near 188.00. The first resistance lies at 187.00, followed by the psychological 187.50 mark. A breakout could expose the yearly high of 187.95 and push toward 188.00. Support is found at the 100-day Simple Moving Average (SMA) at 185.14, then the 50-day SMA at 184.72.
Breaching these levels would take EUR/JPY down to the 200-day SMA at 184.16 and the 184.00 level. The Euro, used by 20 European Union countries, is the second-largest traded currency globally, behind the US Dollar. The European Central Bank (ECB) in Frankfurt sets monetary policy, aiming to maintain price stability through interest rate adjustments.
EUR/USD is the most traded currency pair, accounting for approximately 30% of all transactions. The ECB's mandate is to control inflation and stimulate growth, with interest rate decisions made by the Governing Council every eight weeks. Economic indicators, such as Eurozone inflation data and GDP growth, can influence the Euro's value.
A robust economy and high-interest rates generally benefit the Euro, while weak data may lead to a decline.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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