The euro advanced modestly against the Japanese yen in early European trading on Tuesday, with the EUR/JPY cross hovering near 165.50. The move reflects a weakening in the Japanese yen’s safe-haven appeal as investor sentiment brightens following constructive developments in U.S.-China trade negotiations.
From a technical perspective, EUR/JPY maintains a bullish outlook, with the pair holding above the crucial 100-day Exponential Moving Average (EMA) on the daily chart. The 14-day Relative Strength Index (RSI) registers near 63.50, reinforcing upward momentum in the near term.
Key resistance levels lie ahead, beginning with 165.65—the upper limit of the Bollinger Band. A break above this level could open the door to further gains toward 166.10, the high recorded on November 6, 2024, followed by the October 30 peak at 166.60.
On the downside, initial support is seen at 164.55, the low of June 9. A sustained break below this level could trigger a retreat toward 162.90, the June 5 low, with the 100-day EMA at 162.40 serving as a pivotal support threshold.
Market participants will be closely monitoring risk sentiment and technical cues for further direction in the EUR/JPY cross.
