EUR\/JPY rose after falling by nearly 0.5% in the previous session, trading near 186.80 during Asian hours on Monday. The daily chart shows price action moving higher inside an ascending channel.<\/p>\n
The cross remains above the nine- and 50-period Exponential Moving Averages (EMAs), which supports the near-term upward trend. The 14-day Relative Strength Index is 62.30, showing positive momentum without reaching extreme levels.<\/p>\n
Immediate resistance is seen at 187.00, followed by the all-time high of 187.95 set on 17 April. If the move extends, the pair could test the upper channel boundary near 188.60.<\/p>\n
On the downside, first support is the nine-day EMA at 186.58, then the lower channel boundary around 186.00. If price breaks below the channel, it may move towards the 50-day EMA at 184.51.<\/p>\n
We see the bullish technical trend in EUR\/JPY is fundamentally supported by monetary policy divergence. The current interest rate differential, with the European Central Bank’s policy rate at 3.5% versus the Bank of Japan’s 0.1%, continues to make holding the Euro more attractive. This policy gap is the primary driver behind the sustained uptrend.<\/p>\n
Given the room for upside indicated by the RSI, we are looking at buying call options with strikes near the 188.00 level. This strategy aims to capitalize on a potential move towards the recent all-time high and the upper channel boundary. The latest Eurozone inflation report, showing a steady 2.4%, suggests the ECB will not rush to cut rates, which further strengthens our conviction.<\/p>\n
For risk management, the nine-day EMA at 186.58 is our first line of defense. We remember the sharp pullback on intervention fears back in the third quarter of 2025, so a confirmed break below the 186.00 channel support would prompt us to reduce long exposure. Cautious traders might consider buying protective puts below this level to hedge against a similar sudden downturn.<\/p>\n","protected":false},"excerpt":{"rendered":"
EUR\/JPY rebounded to 186.80, maintaining an ascending channel; resistance at 187.00\u2013187.95, support near 186.58.<\/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-45331","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\/45331","targetHints":{"allow":["GET","POST","PUT","PATCH","DELETE"]}}],"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=45331"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/45331\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=45331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=45331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=45331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}