The Euro is exhibiting resilience against the Japanese Yen, with the EUR/JPY cross holding steady near 184.35 during the early European session on Tuesday. The pair maintains a mildly bullish bias, trading above the 100-day exponential moving average at 182.10 and the Bollinger middle band at 183.70, with the RSI at 55.22 confirming positive momentum. Immediate resistance is noted near 185.80, with further upside potential toward 186.30 if this level is breached. Key support levels are identified at 183.70, 183.00, and the 100-day EMA at 182.10. The bullish structure is underpinned by the European Central Bank's hawkish tone, as markets are now pricing in 2–3 interest rate hikes for 2026 due to surging energy-driven inflation, marking a significant shift from previous expectations of holding rates. However, ongoing tensions between the United States and Iran could boost demand for the safe-haven Japanese Yen, potentially limiting the Euro's upside against the JPY [1].
Meanwhile, the EUR/USD pair is consolidating around 1.1530 during the Asian trading session on Tuesday, remaining within Monday's trading range. The US Dollar Index (DXY) is trading slightly higher near 100.10. Market participants are closely watching Iran's final decision on the US ceasefire proposal, with a deadline set for Tuesday at 08:00 PM ET. An advisor to Iran's Parliament Speaker, Mohammad Bagher Ghalibaf, issued a strong statement, warning that President Trump has about 20 hours to comply with Iran's demands or face severe consequences, emphasizing that Tehran will not back down and dismissing Trump's threats as 'delusional.' On the US domestic front, investors are awaiting the release of the Federal Open Market Committee (FOMC) minutes from the March policy meeting, where the Fed left interest rates unchanged at 3.50%-3.75% [2].
Technically, EUR/USD is trading marginally below the 20-day EMA at 1.1560, with the short-term tone remaining mildly bearish. The 14-day RSI is in the mid-40s, indicating negative but not extreme momentum. Resistance is seen at the 20-day EMA (1.1560), the descending trend-line near 1.1600, and the March 10 high at 1.1666. Support is provided by a rising trend line from 1.1410, with a daily close below 1.1470 opening the way toward 1.1410. As long as EUR/USD remains below 1.1600, rallies are expected to encounter selling pressure, keeping focus on the 1.1470–1.1410 support band [2].
Overall, both EUR/JPY and EUR/USD are being influenced by geopolitical developments and central bank policy expectations. While the Euro maintains a bullish structure against the Yen, its performance against the Dollar is more subdued, with technical indicators suggesting a mildly bearish outlook in the short term.
CONCLUSION
The Euro is holding steady against the Yen, supported by expectations of future ECB rate hikes, but faces potential headwinds from geopolitical tensions. Against the Dollar, the Euro remains in a consolidation phase, with technicals pointing to a mildly bearish bias as markets await key geopolitical and monetary policy developments. Market participants are likely to remain cautious until further clarity emerges on both the Iran-US situation and central bank policy directions.