The EUR/JPY currency pair advanced for the third consecutive day, trading around 177.40 during Asian hours on Monday, October 12, 2026, despite thin liquidity conditions that some consider optimal for potential 'Yentervention' [1]. Technical analysis indicates that EUR/JPY remains within a descending channel, reflecting a bearish bias in the near term. The pair is trading below both the nine-period and 50-period Exponential Moving Averages (EMAs), with the nine-day EMA at 177.66 and the 50-day EMA at 180.63 acting as immediate resistance levels [1]. The subdued 14-day Relative Strength Index (RSI) at approximately 36 further suggests weak upside momentum following a recent pullback [1].
On the downside, the initial support is identified at the lower boundary of the descending channel near 176.10. A break below this level could bring the 11-month low of 175.70, recorded in November 2025, into focus. Should selling pressure intensify, the next significant support would be the 14-month low at 169.72 [1]. Conversely, a decisive move above the key EMAs could trigger bullish momentum, targeting the upper boundary of the channel near 184.00 and potentially the all-time high of 187.95 set on April 17 [1].
In related market flows, analysts at Commerzbank noted that Japanese investors have been net sellers of long-term French bonds over the past year, with cumulative net purchases declining since the pandemic. However, these investors have returned as buyers in the past three months. Commerzbank concludes that Japanese investors are unlikely to have been responsible for recent volatility in the French bond market [1].
Regarding broader currency movements, the Euro was the strongest against the New Zealand Dollar today, with a 0.20% gain, and posted a 0.09% gain against the Japanese Yen [1].
CONCLUSION
EUR/JPY's recent gains are tempered by a prevailing bearish technical structure, with key resistance and support levels in focus. Market sentiment remains cautious, as upside momentum appears limited and broader Euro strength is modest. The outlook hinges on whether the pair can break above critical EMAs to shift the near-term bias.