EUR/JPY is trading near 179.70 after recovering from the previous session’s modest decline, keeping the pair close to the psychologically important 180.00 level. The EUR/JPY exchange rate was 179.70 in the European Central Bank’s latest Sept. 25 reference data, while market data showed the cross around 179.6 on Sept. 28. Technical conditions remain cautious as the pair trades inside a descending channel and below key moving averages.
EUR/JPY Holds Bearish Structure
The daily chart continues to show a descending channel, keeping the recent recovery within a broader corrective structure. EUR/JPY remains below its nine-day and 50-day Exponential Moving Averages, indicating that the short-term rebound has yet to establish a broader technical reversal.
The 14-day Relative Strength Index stands at 41.43, below the neutral 50 threshold. That reading points to subdued momentum, although it also suggests selling pressure has moderated from the recent decline.
The pair has fallen considerably during September. ECB reference data show EUR/JPY at 185.63 on Sept. 1 before declining to 179.70 by Sept. 25, a move of roughly 3.2%.
Key downside levels include:
- 177.00: Lower boundary of the descending channel.
- 175.70: Reported 11-month low from November 2025.
180.00 Zone Becomes Key Resistance
The immediate technical focus is the nine-day EMA around the 180.00 area. The original source contains an apparent decimal error, listing the level as 17.88; given EUR/JPY is trading near 180 and the source describes the barrier as being near 180.00, the intended resistance is clearly the near-180 zone.
A sustained move above that short-term average would shift attention toward the 50-day EMA at 182.17. Beyond that level, the upper boundary of the descending channel is located around 184.60, while 187.95 represents the April 17 record high cited in the technical analysis.
Yen Intervention Keeps Traders Alert
The Japanese yen is also being influenced by renewed official concern over its valuation. Japan’s Finance Minister Satsuki Katayama said she and U.S. Treasury Secretary Scott Bessent reaffirmed that the yen’s undervaluation was problematic during their Sept. 25 discussions. Bessent separately said the two sides discussed the desirability of a strong yen reflecting Japan’s economic fundamentals.
Scotiabank has also highlighted the importance of Japanese policy signals for the yen. Its recent foreign-exchange research says the Bank of Japan has maintained a tightening path while Japanese policymakers have made high-profile efforts to prepare markets for further policy normalization.
Conclusion
EUR/JPY remains caught between a modest rebound and a still-developing descending-channel structure. The 180.00 region is the immediate technical checkpoint, while 182.17 and 184.60 provide higher resistance references. On the downside, 177.00 and 175.70 remain important levels if selling pressure returns. Japanese officials’ currency comments add another variable for yen crosses as traders assess the next moves in monetary policy and foreign-exchange markets.
Sources & Methodology
Primary-source standard: Market-moving facts should link to original data releases, regulator notices, company filings or official project announcements whenever available. Secondary reporting is used for additional context, not as a substitute for original evidence.
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