The currency pair trades lower as technical indicators signal weak momentum and policymaker concerns over yen weakness persist.
EUR/JPY retreated to around 182.50 in early European trading, ending a three-day winning streak. The cross remains below both the nine- and 50-period Exponential Moving Averages, reinforcing a bearish near-term outlook.
Technical resistance is layered at these moving averages, while the 14-day Relative Strength Index at 39 indicates weak momentum rather than oversold conditions. The pair last tested an eight-month low of 179.37 on August 3, with further downside risk if yen-supportive intervention materializes.
Officials in Japan and the U.S. continue to push back against yen weakness, heightening scrutiny of USD/JPY’s trajectory. Analysts note policymakers are closely monitoring the currency’s drift toward post-intervention lows.