• The EUR/JPY cross may rise toward the all-time high of 187.95.
• The 14-day Relative Strength Index at 55.9 signals positive momentum.
• The immediate support lies at the nine-day EMA of 185.40.

EUR/JPY inches lower after registering gains in the previous day, trading around 185.50 during Asian hours on Tuesday. The technical analysis of a daily chart indicates that the currency cross is remaining close to the lower boundary of the ascending channel pattern, signalling a critical juncture. It offers a high-reward, low-risk entry point for traders; however, if the price presses continuously against the bottom line without bouncing back quickly, it demonstrates underlying market weakness.

The EUR/JPY cross is keeping a constructive bullish tone as it holds above both the nine- and 50-period Exponential Moving Averages (EMAs). The short-term EMA remains above the longer one, hinting at a sustained uptrend, while the 14-day Relative Strength Index (RSI) around 55.9 stays in positive territory without reaching overbought conditions, suggesting room for further gains as long as the cross defends the nearby moving average supports.

The EUR/JPY cross could advance toward the all-time high of 187.95 set on April 17, followed by the upper boundary of the ascending channel around 189.30.

On the downside, the EUR/JPY cross tests the immediate support at the nine-day EMA of 185.40, followed by the lower boundary of the ascending channel at 185.30. Further support lies at the 50-day EMA at 184.86.

A break below the medium-term price average would cause a bearish reversal and put downward pressure on the EUR/JPY cross to navigate the region around the nine-month low of 179.37, recorded on August 3.

Yen focus intensifies ahead of BoJ as policy expectations stay in the spotlight

Strategists at Scotiabank note that the “outlook for relative central bank policy remains front and center into the BoJ’s September 18 decision,” with attention increasingly drawn to signals from both domestic policymakers and international counterparts. They highlight media reports that US Secretary Bessent expects Gov. Ueda “to do the right thing,” underscoring market expectations for a measured policy response. Scotiabank also points out that Board member Takata is scheduled to speak later this week, an event that could further shape perceptions around the BoJ’s near-term policy trajectory.