Support And Resistance Levels

EUR/JPY is currently trading around 176.50 and showing a bullish trend. The daily chart highlights a positive outlook within an ascending channel pattern, with the price staying above the nine-day Exponential Moving Average (EMA). The 14-day Relative Strength Index (RSI) is above 50, confirming this bullish view. Initial resistance is at the record high of 177.94, reached on October 9. If the price surpasses this level, it may advance toward 179.00. Support is located at the lower boundary of the ascending channel, near 176.00. The nine-day EMA at 175.79 provides additional support. If the price falls below this, it could drop to 173.50, which is the 50-day EMA, and potentially reach the six-week low of 172.14 from September 9. Currently, the Euro is performing well against other major currencies, showing it as the strongest against the Swiss Franc. There has been mixed performance against currencies like USD, GBP, and JPY, with some ups and downs in value. These analyses give valuable insights into EUR/JPY’s expected movements in light of ongoing market conditions and currency performance.

Trading Strategies And Risk Management

With EUR/JPY trending upward, we can explore strategies to take advantage of this momentum. The pair remains strong within an ascending channel, and the RSI is above 50, indicating a continued bullish outlook. We should consider buying call options or selling put spreads to profit from a possible approach to the recent record high. Supporting this view are fundamental factors for the Euro. The recent German ZEW Economic Sentiment survey, released on October 7, 2025, showed an unexpected rise to 14.8, surpassing expectations and reflecting renewed confidence in the Eurozone’s economy. This adds to our belief that the Euro side of the pair has the support needed for further gains in the upcoming weeks. Conversely, the Japanese Yen remains weak due to the Bank of Japan’s policies. Last week, BoJ officials reaffirmed their commitment to a loose monetary stance, especially since Japan’s national core CPI for August 2025 was only 1.7%, below their target. This policy gap with the European Central Bank continues to put pressure on the Yen. For our trading strategy, we are focusing on call options with strike prices close to the 177.94 record high, expiring in late October or early November 2025. If that level is crossed, the next target will likely be the significant 179.00 mark. We view the current price action as a chance to establish bullish positions before further upward movement. We also need to manage risk by closely monitoring the support level around 176.00, which indicates the lower boundary of the ascending channel. A clear break below this level could signal a loss of bullish momentum, prompting us to exit our long positions. Traders might consider buying protective puts with a strike price below 175.75 to hedge against a sudden market shift. This market scenario resembles the strong trend seen in 2023 and 2024, driven mainly by the interest rate differences between Europe and Japan. The current setup suggests that this trend may continue. As long as the policy gap persists, the most likely direction for the pair looks upward. Create your live VT Markets account and start trading now.

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