S&P 500 — US Large Cap Index
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CAC 40 — French Market Index
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Hang Seng — Hong Kong Index
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STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- EUR/JPY may fall toward the 12-month low of 175.10.
- The 14-day Relative Strength Index near 35.98 signals subdued upside momentum rather than an oversold state.
- The primary barrier lies at the nine-day EMA of 176.60.
EUR/JPY remains stronger for the second successive day, trading around 176.20 during Asian hours on Tuesday. Based on the technical analysis of the daily chart’s descending channel pattern, the currency cross maintains a clear bearish bias.
The EUR/JPY cross is maintaining a bearish bias as it holds beneath both the nine- and 50-day Exponential Moving Averages (EMAs). The short- and medium-term averages above price suggest rallies remain capped, while the 14-day Relative Strength Index (RSI) at 35.98 stays in weak territory, hinting at subdued upside momentum rather than an outright oversold condition.
The EUR/JPY cross may test the 12-month low of 175.10, reached on October 23, followed by the lower boundary of its descending channel around 174.80. Further declines below this confluence support zone would open the door for the currency cross to navigate the region around the 15-month low at 169.72.
On the upside, the primary barrier lies at the nine-day EMA of 176.60, followed by the upper boundary of the descending channel near 178.50. Further resistance lies at the 50-day EMA of 179.26. A move above the medium-term price average would cause a bullish reversal, supporting the EUR/JPY cross to explore the area around the all-time high of 187.95, reached on April 17.
BoJ seen on hold at 1.25% as market waits on next tightening step
Brown Brothers Harriman’s Elias Haddad notes that the Bank of Japan is “widely expected to keep rates on hold at 1.25% and assess September’s 25bps hike before tightening again,” underscoring market expectations that policymakers will pause to evaluate the impact of the recent move before considering any further adjustment to the policy rate.
