The EUR/JPY currency pair edged higher after three consecutive days of losses, trading around 185.50 during Asian hours on Tuesday. The pair is holding above both the nine-day and 50-day Exponential Moving Averages (EMAs), reinforcing a mildly bullish near-term bias. Technical analysis indicates the cross remains within an ascending triangle, with the 14-day Relative Strength Index (RSI) at approximately 53, suggesting constructive but not overstretched momentum. Resistance is seen at the triangle’s upper boundary near 186.10, with a decisive break potentially exposing the all-time high of 187.95 recorded on April 17. On the downside, immediate support lies at the nine-day EMA of 185.46, the 50-day EMA at 185.12, and the lower edge of the triangle near 185.00. A breakdown below these levels could expose the pair to deeper downside toward the March 16 five-month low of 181.87 and the seven-month low of 180.81. The Euro was the strongest against the Japanese Yen among major currencies today, according to the percentage change table provided [1].
Meanwhile, the USD/CAD pair attracted buyers for the second consecutive day, recovering from its lowest level since June 17, around the 1.4000 psychological mark. Spot prices advanced to a one-week high during the Asian session, but the intraday move stalled ahead of the 1.4100 confluence hurdle amid mixed fundamental cues. Soft Canadian consumer inflation figures on Monday reaffirmed expectations that the Bank of Canada will keep interest rates unchanged through the remainder of 2026, diverging from expectations that the US Federal Reserve will raise borrowing costs at least once in 2026 due to energy-driven inflation concerns. Additionally, US President Donald Trump's new 50% tariff on Canadian products undermined the Canadian Dollar and supported the USD/CAD pair. Hawkish Fed expectations and escalating US-Iran tensions further bolstered the safe-haven US Dollar. However, elevated oil prices, driven by the closure of the Strait of Hormuz, limited aggressive bearish bets on the Canadian Dollar and capped gains for USD/CAD [2].
From a technical perspective, the USD/CAD pair broke through the 23.6% Fibonacci retracement level of the recent pullback from the highest level since April 2025, favoring bullish traders. The MACD is turning positive, and the RSI is around 56, indicating recovering upside pressure. However, analysts suggest waiting for a move beyond the 1.4100 confluence, which includes the 38.2% Fibonacci level and the 200-period Simple Moving Average on the 4-hour chart, before positioning for further near-term appreciation. Above this level, the pair could target the 50.0% retracement at 1.4126 and the 61.8% level at 1.4155. On the downside, support is seen at the 23.6% retracement near 1.4059 and a more substantial floor at 1.4000 [2].
The Canadian Dollar was the strongest against the Swiss Franc this week, according to the percentage change table provided [2].
CONCLUSION
EUR/JPY is showing a mildly bullish technical setup, holding above key moving averages and outperforming the Japanese Yen among major currencies. USD/CAD's rally has paused below a significant resistance level, with mixed fundamentals and technicals suggesting caution before further upside. Diverging central bank expectations and geopolitical developments are key drivers for both pairs.