S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
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 lower boundary of the descending channel at 176.90.
- The 14-day Relative Strength Index is at 31.77 and approaches oversold territory.
- The immediate barrier lies at the nine-day EMA at 179.13.
EUR/JPY remains subdued for the fourth successive day, trading around 177.70 during Asian hours on Wednesday. Technical analysis of the daily chart shows that the currency cross remains confined within a descending channel pattern. This continuous formation reinforces a persistent bearish outlook for the pair.
The EUR/JPY cross is holding a bearish near-term bias as it remains below both the nine- and 50-period Exponential Moving Averages (EMAs). The short-term EMA staying under the longer one while price trades beneath them suggests the cross is capped by a layered moving-average ceiling, even as the 14-day Relative Strength Index (RSI) at 31.77 flirts with oversold territory and hints that selling pressure could be slowing rather than reversing decisively.
The EUR/JPY cross may fall toward the lower boundary of the descending channel at 176.90, followed by an 11-month low of 175.70, recorded in November 2025.
On the upside, the EUR/JPY cross may rebound toward the nine-day EMA at 179.13. A break above the short-term price average could trigger a bullish reversal and support the cross as it tests the 50-day EMA at 181.83. Further resistance lies at the upper boundary of the descending channel around 184.50, followed by the all-time high of 187.95 set on April 17.
Yen outperforms as Japan officials reiterate FX warning
Analysts at Scotiabank highlight the Yen as a standout in G10 trading, noting that it is “the only notable exception” to broader defensive price action. They point to “a clear late Asian-session surge driven by FX-related comments from Japan’s Vice Minister for International Affairs, Atsushi Mimura,” who “reminded market participants to heed last week’s warnings from both PM Takaichi and FinMin Katayama.” This renewed emphasis from senior Japanese officials has underpinned JPY strength on the crosses, in contrast to the softer tone seen elsewhere.
