Japan’s plan to boost domestic asset investments may support the JPY, capping gains in the EUR/JPY cross amid Middle East tensions.
The EUR/JPY pair traded at 184.65 in early Asian hours, remaining above 184.50 but facing resistance from geopolitical risks and potential JPY support. Heightened Middle East tensions could strengthen the safe-haven JPY, limiting the cross’s upside.
Japan’s Finance Minister indicated plans to increase domestic asset investments, including by the Government Pension Investment Fund (GPIF). Analysts suggest this could provide stronger support for the JPY than direct intervention. The pair remains below its 100-day SMA and Bollinger Bands’ 20-day middle line, signaling a mildly bearish near-term outlook.
Technical resistance lies at 184.80-184.85, with a break above needed to shift sentiment. Downside support is seen near the lower Bollinger band, while the RSI at 47.6 indicates subdued pressure.