During the early European session on Wednesday, the EUR/JPY is trading at 174.50 with slight gains.
Above the 100-day EMA, a bullish RSI signal indicates that the cross is in a good outlook.
The initial support level to keep an eye on is 173.48; the immediate resistance level is located in the 174.90–175.00 range.
During early European trading hours on Wednesday, the EUR/JPY cross shows slight gains close to 174.50. The most recent S&P Global flash Japan Manufacturing Purchasing Managers' Index (PMI) dropped at the highest rate in six months in September, which caused the Japanese yen (JPY) to weaken versus the euro (EUR).
The JPY may also be impacted if the Bank of Japan (BoJ) decides to postpone hiking interest rates due to worries about political unpredictability in Japan ahead of the October 4 Liberal Democratic Party (LDP) leadership election.
With the price of EUR/JPY well-supported above the important 100-day Exponential Moving Average (EMA) on the daily timeframe, the technical outlook is still positive. The 14-day Relative Strength Index, which is above the midline at 64.95, supports the upward trend. This implies that additional upside appears promising in the foreseeable future.
Positively, the 174.90–175.00 zone, which is a psychological level and the upper boundary of the Bollinger Band, is where the critical upside barrier appears. Long-term trading above this level may gain additional traction and target 175.43, the peak of July 17, 2024. The psychological level of 176.00 is the next resistance level further north.
On the downside, the low of September 19, 173.48, is the first level of support for EUR/JPY. A decline to 172.36, the September 11 low, might result from any follow-through selling below this level. The lower boundary of the Bollinger Band, 171.53, is another downside filter to keep an eye on.
EUR/JPY daily chart
Above the 100-day EMA, a bullish RSI signal indicates that the cross is in a good outlook.
The initial support level to keep an eye on is 173.48; the immediate resistance level is located in the 174.90–175.00 range.
During early European trading hours on Wednesday, the EUR/JPY cross shows slight gains close to 174.50. The most recent S&P Global flash Japan Manufacturing Purchasing Managers' Index (PMI) dropped at the highest rate in six months in September, which caused the Japanese yen (JPY) to weaken versus the euro (EUR).
The JPY may also be impacted if the Bank of Japan (BoJ) decides to postpone hiking interest rates due to worries about political unpredictability in Japan ahead of the October 4 Liberal Democratic Party (LDP) leadership election.
With the price of EUR/JPY well-supported above the important 100-day Exponential Moving Average (EMA) on the daily timeframe, the technical outlook is still positive. The 14-day Relative Strength Index, which is above the midline at 64.95, supports the upward trend. This implies that additional upside appears promising in the foreseeable future.
Positively, the 174.90–175.00 zone, which is a psychological level and the upper boundary of the Bollinger Band, is where the critical upside barrier appears. Long-term trading above this level may gain additional traction and target 175.43, the peak of July 17, 2024. The psychological level of 176.00 is the next resistance level further north.
On the downside, the low of September 19, 173.48, is the first level of support for EUR/JPY. A decline to 172.36, the September 11 low, might result from any follow-through selling below this level. The lower boundary of the Bollinger Band, 171.53, is another downside filter to keep an eye on.
EUR/JPY daily chart
