The Japanese Yen (JPY) continues to trade with a depressed tone against both the US Dollar (USD) and the Euro (EUR), as evidenced by the positive bias in USD/JPY and EUR/JPY pairs during the Asian session on Wednesday [1][2]. USD/JPY has maintained a slight bullish tilt for the second consecutive day, holding comfortably above the 100-period Exponential Moving Average (EMA) on the 4-hour chart, but remains below the 159.00 mark. Technical indicators such as the MACD and RSI suggest modest upside momentum, though conviction is lacking, and resistance is expected near 159.30 and 159.80, with a potential extension toward 160.50 if bullish control is reasserted. On the downside, support is seen at 158.30 and 157.90, with a drop below the latter potentially triggering a corrective phase [1].
Minutes from the Bank of Japan's January meeting revealed policymakers' inclination to continue raising interest rates. Despite this, the Yen has failed to attract significant buyers, weighed down by concerns over the impact of war-driven energy price surges on Japan's economic growth and ongoing geopolitical uncertainties, which bolster the USD's reserve currency status [1].
EUR/JPY has held gains for the fourth consecutive trading day, hovering around 184.30. The spot price is rising above the upper boundary of a descending triangle, signaling a bullish reversal, although low trading volumes indicate a lack of strong buyer conviction. The RSI near 56 confirms improving momentum, and the cross remains above the 50-day EMA, with the nine-day average also rising above it. The EUR/JPY may explore the region around its all-time high of 186.88, reached on January 23. Immediate support is at the nine-day EMA of 183.77, with further downside risk to 183.28 and 181.60 if bearish momentum returns [2].
Currency heat map data shows the Euro was the strongest against the Australian Dollar, while the Yen was weaker against both the USD and EUR, with EUR/JPY up 0.03% and USD/JPY up 0.06% on the day [2].
No forward-looking statements or analyst opinions beyond technical analysis and BoJ meeting minutes are provided in the sources.
CONCLUSION
Both USD/JPY and EUR/JPY pairs exhibit a mildly bullish bias, supported by technical indicators and recent price action, while the Japanese Yen remains weak amid concerns over Japan's economic outlook and geopolitical factors. Market sentiment is cautiously optimistic for further upside, but conviction among buyers is limited, and key resistance levels may cap gains in the near term.