The EUR/JPY currency pair registered two consecutive days of gains but struggled to maintain bullish momentum on Tuesday, ending the day nearly unchanged at 184.69 as buyers encountered a confluence of resistance levels near the 184.70 area [1]. Technical analysis indicates that the cross is approaching the intersection of the 50- and 100-day Simple Moving Averages (SMAs) at approximately 184.72/73, with the 50-day SMA exhibiting strong bullish momentum. This momentum could potentially propel EUR/JPY past the 200-day SMA, which is currently below the spot price at 184.05 [1].
A decisive break above the 50- and 100-day SMA confluence would open the path for EUR/JPY to challenge the 185.00 level. If surpassed, traders may target the next cycle high at 187.47, which was last reached on July 29 [1]. Conversely, the first support for EUR/JPY is identified at the 200-day SMA (184.05), followed by the May 6 swing low at 182.05 and the August 3 low at 179.37 [1].
In broader currency market movements, the Japanese Yen was the strongest against the New Zealand Dollar today, as shown in the provided heat map. The JPY gained 0.36% against the NZD, while its performance against other major currencies was mixed, with a 0.09% gain against the USD and a 0.11% gain against the CHF [1].
No forward-looking statements or analyst opinions were provided in the source article beyond the technical outlook and potential price targets based on SMA levels [1].
CONCLUSION
EUR/JPY is currently facing significant resistance near the 184.70 area, with technical indicators suggesting a potential breakout if the pair can surpass the confluence of the 50- and 100-day SMAs. The Japanese Yen showed strength against the New Zealand Dollar, but overall market impact remains moderate as traders await a decisive move. The next key levels to watch are 185.00 on the upside and 184.05 on the downside.