EUR\/JPY slipped after two sessions of gains and traded near 185.00 during European hours on Wednesday. The daily chart still shows an upward move inside an ascending channel.<\/p>\n
The pair remains above the 50-day Exponential Moving Average (EMA), supporting a mildly bullish near-term tone. The nine-day EMA is above the 50-day EMA, which points to a short-term uptrend.<\/p>\n
The Relative Strength Index (RSI) is near 59 and remains above 50. This suggests ongoing buying pressure rather than overbought conditions.<\/p>\n
Resistance sits near the top of the channel at about 185.70. A break above the channel could open a move towards the record high of 186.88, set on 23 January.<\/p>\n
Support is first seen at the nine-day EMA at 184.33. If that level breaks, the next levels are the 50-day EMA at 183.58 and the lower channel line near 183.00.<\/p>\n
The technical section of the report used an AI tool.<\/p>\n
The bullish trend in EUR\/JPY is being reinforced by the diverging monetary policies between the European Central Bank and the Bank of Japan. We see that recent Eurozone core inflation for March 2026 came in at 2.8%, making the ECB hesitant to signal any rate cuts. This policy stance differs greatly from the Bank of Japan, which last week reaffirmed its commitment to an accommodative policy to support fragile wage growth.<\/p>\n
Given the upward momentum shown by the technicals, we should consider buying call options to capitalize on a potential move towards the January high. A strike price around 186.00 with an expiration in May 2026 would seem appropriate to capture this next leg up. The Relative Strength Index at 59 suggests there is still room for the cross to run before becoming overbought.<\/p>\n
Looking back, we remember the sharp volatility spikes in this pair during the second half of 2025. In contrast, one-month implied volatility is currently trading at a calmer 8.7%, making the purchase of options relatively cheaper. This environment is favorable for establishing long positions without paying an excessive premium.<\/p>\n
To manage risk, we must watch the 184.33 level, which corresponds to the nine-day moving average. A firm break below this would be our first signal that the bullish momentum is fading. In that scenario, purchasing put options with a strike price below 183.50 could serve as an effective hedge for any long positions.<\/p>\n
For a strategy with a defined risk-reward profile, a bull call spread could be implemented. This would involve buying the 185.50 strike call and simultaneously selling the 187.00 strike call. This approach would lower the initial cost of the trade while targeting a move toward the previous all-time high.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" EUR\/JPY dips near 185.00 yet stays bullish in ascending channel; resistance 185.70, support 184.33 remains.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-44423","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/44423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=44423"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/44423\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=44423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=44423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=44423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}