Investor caution over potential Japanese forex intervention limits yen weakness, keeping EUR/JPY range-bound near key levels.
The EUR/JPY pair held near 163.70 on Monday as the Japanese yen strengthened, with traders avoiding aggressive bets due to fears of official intervention in currency markets. The pair remains capped within a 186.00-187.00 range over the past three sessions, hitting a two-day low of 186.13 earlier in the day.
Technical indicators show a flat Relative Strength Index (RSI), signaling balanced control between buyers and sellers. A break above 186.50 could target 187.00, while further gains may test the July 1990 high at 188.23. Downside support lies at 185.35, with a breach exposing the 50- and 100-day SMAs at 185.12/08.
The yen outperformed against major currencies, including the British pound, amid heightened intervention speculation. Market focus remains on potential policy shifts from Japanese authorities to stabilize the currency.