EUR/JPY Price Forecast: Softens below 183.50 on safe-haven demand, but holds mildly bullish outlook

The EUR/JPY cross loses traction to around 183.20 during the early European session on Tuesday. The Japanese Yen (JPY) strengthens against the Euro (EUR) as escalating conflict in the Middle East boosts safe-haven demand. 

On the other hand, uncertainty surrounding the Bank of Japan (BoJ) interest rate path might weigh on the JPY against the EUR. BoJ Governor Kazuo Ueda last week signaled a likely prolonged hold on interest rates due to the potential economic impact of the Middle East conflict. While some analysts expected a BoJ March hike, many now anticipate the Japanese Yen central bank to stand pat until at least April or July, according to Reuters. 

Technical Analysis:

In the daily chart, the near-term bias of EUR/JPY is mildly bullish as the cross is well-supported above the rising 100-day EMA. The RSI has retreated toward the 50 line from overbought territory, signalling fading upside momentum rather than a clear trend reversal.

Initial support emerges at 182.90, ahead of the stronger confluence around 181.30 where the 100-day EMA underpins the broader uptrend, with a break there exposing 180.00 as the next downside level. On the topside, resistance sits at 184.85, followed by the recent swing high at 185.70, where proximity to the upper Bollinger Band has previously capped advances and would need to give way to revive a sustained bullish extension.

(The technical analysis of this story was written with the help of an AI tool.)