The Japanese Yen (JPY) is exhibiting resilience against both the US Dollar (USD) and the Euro (EUR), with key currency pairs USD/JPY and EUR/JPY trading near significant technical resistance levels during the Asian session on Friday [1][2]. The USD/JPY pair is trading with a mild negative bias below the mid-159.00s, close to a two-week high reached the previous day. This movement is influenced by signs of cooling US inflation, which have tempered expectations for an immediate Federal Reserve rate hike and kept the US Dollar subdued [1]. Meanwhile, the Japanese Yen is drawing support from market bets on further policy tightening by the Bank of Japan, although Japan's borrowing costs remain much lower than those of other major economies, sustaining the JPY carry trade [1].
From a technical perspective, USD/JPY's recovery from the 155.25-155.20 area has stalled near the 50% Fibonacci retracement level of the recent intervention-led decline. The Relative Strength Index (RSI) is mildly positive at around 56, but the MACD has slipped below zero, indicating waning upside momentum. Key resistance levels are identified at 159.61 (50% retracement), 159.85 (100-period EMA), 160.65 (61.8% retracement), 162.12, and 164.00, while support lies at 158.58 (38.2% retracement), 157.30 (23.6% retracement), and 155.23 (structural floor) [1].
The EUR/JPY pair is holding steady near 183.90, just below its 50-day Exponential Moving Average (EMA) at 184.49, after minor gains the previous day [2]. The technical setup, with a near-neutral 14-day RSI at 48.21 and the pair trading above its nine-period EMA but below the 50-period EMA, suggests a consolidative tone with a slight bearish bias. Immediate support is at the nine-day EMA of 183.59, with further downside targets at the eight-month low of 179.37 and the nine-month low of 175.70. On the upside, a sustained break above the 50-day EMA could open the path to retest the all-time peak of 187.95 set on April 17 [2].
Currency performance tables show that the Japanese Yen was the strongest against the Swiss Franc this week, while the Euro was the strongest against the US Dollar today [1][2]. No explicit market reactions or analyst opinions beyond technical analysis are provided in the sources.
CONCLUSION
Both USD/JPY and EUR/JPY are consolidating near key technical resistance levels, with the Yen drawing support from expectations of Bank of Japan policy tightening and a subdued US Dollar. Technical indicators suggest a cautious or slightly bearish outlook for both pairs in the near term. Market participants are closely watching for breaks of these resistance or support levels to determine the next directional move.