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IPC Index — Mexico Market
- EUR/JPY may find immediate support at the psychological level of 180.00.
- The 14-day Relative Strength Index is at 41.70, indicating weak buying pressure.
- The primary barrier lies at the 50-day EMA of 182.46.
EUR/JPY extends its losses for the second successive day, trading around 180.10 during Asian hours on Wednesday. Technical analysis of the daily chart shows the currency cross remaining within a descending channel, suggesting a persistent bearish bias.
The EUR/JPY cross is maintaining a mild bearish bias as it holds just above the nine-day Exponential Moving Average (EMA) but remains capped by the 50-day EMA. The pair’s inability to reclaim this longer-term EMA suggests topside momentum is constrained, while the 14-day Relative Strength Index (RSI) at 41.70 stays below the midline, hinting at subdued buying pressure rather than a decisive downside extension.
The EUR/JPY cross tests the immediate support at the psychological level of 180.00, aligned with the nine-day EMA of 179.95. A break below this confluence support zone would strengthen the bearish bias and put downward pressure on the currency cross to navigate the region around the lower boundary of the descending channel at 177.30, followed by nearly an 11-month low of 175.70, recorded in November 2025.
On the upside, the EUR/JPY cross may rise toward the 50-day EMA of 182.46. Further resistance lies at the upper boundary of the descending channel around 184.80, followed by the all-time high of 187.95 set on April 17.
Yen outlook shifts as MUFG flags steady BoJ tightening path
Analysts at MUFG argue that the Bank of Japan’s latest policy move marks the start of a “new phase” for monetary policy, one they judge to be “consistent with a rate hike every three months.” They note that this more regular tightening cadence is emerging even as external factors such as higher US yields and elevated energy prices continue to weigh on the Yen, reinforcing expectations that BoJ policy will gradually but steadily become less accommodative over the coming quarters.
