The EUR/JPY currency pair posted modest gains, trading around 185.65 during the early European session on Thursday, maintaining a bullish bias above the 185.50 level [1]. The upside for the cross may be limited due to concerns about potential foreign exchange intervention by Japanese authorities. Japan’s Finance Minister Satsuki Katayama stated on Wednesday that officials are prepared to respond appropriately to foreign exchange developments if necessary, and indicated alignment with the Bank of Japan governor on several matters [1].
Meanwhile, the European Central Bank's hawkish stance could help limit losses for the euro. According to a Reuters poll of economists, the ECB is expected to raise its deposit rate to 2.25% at its upcoming June policy meeting, with another increase likely in September [1].
Technical analysis shows EUR/JPY consolidating above the Bollinger middle band at 185.15 and the 100-day simple moving average near 184.48, with the pair trading closer to the upper half of its recent Bollinger envelope. The upper band near 186.02 acts as immediate resistance, while the Relative Strength Index (14) at 55 suggests steady but not overstretched upside momentum [1]. A daily close above 186.02 could pave the way for further advances, while support levels are seen at 185.15, 184.48, and 184.28, where buyers may re-emerge if the pullback deepens [1].
No explicit market reactions or analyst opinions beyond the technical outlook and central bank expectations were mentioned in the article [1].
CONCLUSION
EUR/JPY remains supported above key technical levels, with a modest bullish bias intact. Intervention concerns from Japanese authorities and a hawkish ECB outlook are influencing the pair's near-term direction. The market is watching for a breakout above resistance or a deeper pullback to support levels.