The currency pair consolidates after hitting a year-to-date high, with technical indicators signaling potential upside amid intervention risks.
The EUR/JPY pair trades near 186.00, down 0.06% as risk sentiment sours due to escalating US-Iran tensions, bolstering the safe-haven Japanese Yen. The cross has fluctuated between 186.00 and 187.00 after reaching a year-to-date high of 187.95 earlier this month.
Following the Bank of Japan’s last intervention, the pair dipped to 183.00 before buyers regained momentum, reclaiming key resistance levels. The Relative Strength Index remains in bullish territory, suggesting potential for further gains if 187.00 is breached. Support levels include the 50-day and 100-day Simple Moving Averages at 185.20 and 185.05, respectively.
Market participants remain cautious over potential Japanese authorities’ intervention, though bulls target 189.00 and the 190.00 psychological level if resistance is cleared.