Market caution persists over potential Japanese authorities’ action, capping gains despite modest bullish momentum in the cross.
The EUR/JPY pair traded flat at 185.59 on Monday as investors avoided pushing the cross higher amid intervention fears by Japanese authorities. Markets remain wary despite no recent action following a coordinated US-Japan move last month.
After dropping from 187.44 to 182.12 during the intervention period, the pair rebounded near 186.00. The Relative Strength Index (RSI) signals modest bullish momentum, though resistance at 187.00 and 187.50 could limit upside. Support lies at the 100-day SMA of 185.14.
A break above 188.00 would shift sentiment bullish, while a drop below 184.00 could signal further downside pressure.