The EUR/JPY currency pair is trading in a neutral zone near 184.00 following the release of key economic data from both the Eurozone and Japan. The Eurozone Composite Purchasing Manager Index (PMI) dropped to 50.5 from 51.9, marking a 10-month low and signaling a significant loss of economic momentum in the region. The Services PMI also declined to 50.1 from 51.9, further highlighting weakness in the services sector. However, the Manufacturing PMI provided some support, rising to 51.4 from 50.8 and reaching its highest level in nearly four years [1].
In Japan, the National Consumer Price Index (CPI) rose 1.3% year-over-year in February, easing from 1.5% previously. Core inflation, which excludes fresh food, slowed to 1.6% from 2.0%, slipping below the Bank of Japan’s (BoJ) 2% target. This softer inflation data could complicate the BoJ’s path toward policy normalization, as policymakers have emphasized their commitment to increasing rates if the economy and prices develop as expected. The BoJ reiterated its aim to achieve the 2% inflation target in a stable and sustainable manner [1].
Technical analysis indicates that EUR/JPY trades at 184.07, with a mildly bullish near-term bias. The pair holds above layered support and both the 20-period and 100-period Simple Moving Averages (SMAs), which are trending higher around the mid-183.00s. The Relative Strength Index (RSI) at 59 suggests steady buying pressure without reaching overbought territory. Immediate support is seen at 184.06, followed by 183.82 and 183.67, while resistance levels are expected beyond 184.10 if the bullish bias persists [1].
CONCLUSION
The EUR/JPY pair remains steady despite weaker Eurozone PMI data and softer Japanese inflation, with technical indicators pointing to a mildly bullish bias. Market participants are closely watching central bank policy signals, as the BoJ’s path to normalization may be complicated by subdued inflation. Overall, the market impact is medium, with no sharp moves expected unless further economic surprises emerge.