- EUR/JPY edges lower to near 185.90 in Wednesday’s early European session.
- Japan’s Katayama said the authorities are standing ready to respond appropriately to foreign exchange.
- The positive view for the cross remains intact above the key 100-day EMA, with bullish RSI momentum.
- The first upside barrier emerges at 186.10; the initial support level to watch is 185.08.
The EUR/JPY cross trades in negative territory around 185.90 during the early European trading hours on Wednesday. The Japanese Yen (JPY) gathers strength against the Euro (EUR) as traders are on alert for intervention from Japanese officials.
Japan’s Finance Minister Satsuki Katayama said on Wednesday that the authorities are ready to act on the foreign exchange if required, adding that she aligns with the Bank of Japan (BoJ) governor on several matters.
Technical Analysis:
In the daily chart, EUR/JPY holds a constructive bullish bias as price trades above the Bollinger middle band around and comfortably over the 100-day simple moving average (SMA), suggesting the broader uptrend remains intact. The latest Relative Strength Index (RSI) reading at 58.43 sits in positive territory without being overbought, hinting that bullish momentum persists but has not yet reached exhaustion.
On the upside, the immediate resistance level is now aligned with the Bollinger upper band near 186.10, en route to the April 29 high of 187.42. On the other hand, the mid-line around 185.08 reinforcing a nearby demand zone. The next crucial contention level is located near the 100-day SMA at 184.47 and the lower Bollinger band close to 184.07.
