EURJPY Pulls Back, Bullish Trend Holds
EUR/JPY drifts lower toward 187.50 in Thursday’s early European session, April 16, pressured by a modest recovery in the Japanese Yen. The move comes as intervention concerns resurface after comments from Japan’s Finance Minister, Satsuki Katayama, who emphasized that G7 nations are closely monitoring currency volatility.
Even so, the broader trend remains supportive. The pair continues to trade above the 100-day Exponential Moving Average (EMA), signaling that buyers still control the medium-term direction. Expectations that the Bank of Japan may raise interest rates to 1.00% by mid-year could further influence Yen strength and limit upside momentum.
Upside Intact, But Momentum Stretched
On the daily chart, EUR/JPY maintains a bullish bias as long as price holds above the 100-day EMA. The pair is currently testing the upper boundary of its recent range, while the Relative Strength Index (RSI) hovers just below overbought territory. This suggests strong momentum, but also increases the risk of a short-term pause or pullback.
Immediate resistance appears near 187.95, followed by a higher target around 188.50 if bullish momentum continues. On the downside, initial support is seen at 186.20, with deeper levels near 185.00 and the 100-day EMA around 182.75 likely to act as a stronger cushion if selling pressure increases.
What Should Investors Do
For now, the trend still favors the upside, but entries require more caution. Buying on dips remains a reasonable approach as long as the pair stays above key support levels, especially around 186.20. However, traders should stay alert to sudden Yen strength driven by policy signals or intervention headlines, which can quickly reverse gains.
In short, EUR/JPY remains bullish overall, but with momentum stretched, patience and disciplined risk management are key.
