⚡ EUR/JPY Price Forecast: Softens to near 184.50, mildly bearish bias persists under 100-day SMA

The EUR/JPY cross is trading under pressure around 184.60 in early European hours Wednesday as the Japanese Yen strengthens against the Euro. The pair remains below its 100-day simple moving average, maintaining a mildly bearish technical outlook. The Yen’s gains come as traders digest hawkish signals from the Bank of Japan, suggesting potential further monetary policy tightening ahead. The currency pair has softened toward the 184.50 level as sentiment shifts in favor of the Japanese currency.

This development particularly impacts currency traders and brokers with exposure to EUR/JPY positions, as well as multinationals managing European-Japanese cash flows. The technical breakdown below the 100-day SMA indicates potential for extended weakness if the BoJ continues its hawkish rhetoric. Market participants should monitor upcoming BoJ commentary closely as any additional policy tightening hints could accelerate downside momentum.

FXnCO Insight

Traders should consider reducing long EUR/JPY exposure while the pair remains below the 100-day SMA, with stops above this technical level for any counter-trend positions.

Source: FXStreet