The euro weakened against the Japanese yen during Thursday's Asian trading session, snapping a three-day sequence of gains as the cross hovered near 178.90. Technical indicators on the daily timeframe demonstrate that the currency pair continues to navigate inside a well-defined descending channel, maintaining an overarching downward trajectory.
Technical Indicators Reinforce Bearish Pressure
The near-term technical outlook for EUR/JPY remains muted as the cross holds below its nine-day and 50-day Exponential Moving Averages (EMAs). Failing to reclaim these critical short- and medium-term moving averages highlights that upward attempts face persistent selling interest. The nine-day EMA stands at 179.53, while the 50-day EMA resides at 182.84, acting as concrete overhead ceilings against sustained upside rallies.
Momentum indicators present a similar narrative. The 14-day Relative Strength Index (RSI) is positioned around 32, confirming ongoing downside momentum. Rather than showing signs of an immediate recovery, the index hovers just marginally above oversold levels. In active market trading, the currency pair stands at 179.53, slightly above the prior close of 179.20, with a 52-week trading band spanning from 172.27 to 187.93.
Key Chart Support and Resistance Thresholds
Should the ongoing selling momentum carry the cross lower, EUR/JPY could initially challenge primary support along the descending channel's lower boundary at 177.40. A continued break below that floor would expose the 175.70 area, which represents an approximate 11-month low registered in November 2025.
Conversely, if buyers regain traction, initial technical resistance emerges at the nine-day EMA level of 179.53, followed by the 50-day EMA at 182.84. Beyond these hurdles, the upper boundary of the descending channel near 185.10 presents substantial resistance, with the ultimate historic peak of 187.95 recorded on April 17 lingering as long-term resistance. In the intermediate term, dynamic support sits near 177.85 and resistance around 185.98.
Cross-Currency Performance Across Global FX
Within broader currency flows, the euro has experienced divergent trading against other G10 currencies, registering its steepest decline against the Australian dollar on the day. Foreign exchange performance metrics reflect heightened repositioning across major pairs following major monetary policy adjustments.
The Australian dollar gained renewed traction against the US dollar (AUD/USD), reclaiming the 0.7100 handle during Asian trade. This move unfolded as the US dollar moderated its post-Federal Reserve surge, which had previously lifted it to levels unseen since late July. In addition, growing expectations of rate hikes from the Reserve Bank of Australia alongside hopes for diplomatic progress between the US and Iran supported market risk sentiment, providing tailwinds to the Australian currency.
Bank of Japan Normalization and Global Carry Dynamics
USD/JPY attempted to recover after briefly slipping below 156.00 in Asian trade, threatening to end a three-session rally that had carried the pair toward a two-week peak a day earlier. The greenback lost upward momentum following its climb to seven-week highs, while revised market expectations for monetary tightening by the Bank of Japan offered underlying strength to the yen. All market attention is firmly centered on the Bank of Japan's upcoming policy meeting scheduled for Friday.
Japan's era of ultra-loose monetary policy provided affordable funding for trillions of dollars in international investments over more than a decade, cementing the yen's status as a global funding anchor. As the Bank of Japan prepares for further policy tightening, that dynamic appears poised for structural transformation. While central banks across most leading economies moved to lift borrowing costs in recent cycles, Japan had long remained the solitary outlier.
Gold and Cryptocurrency Market Reactions
Cross-asset sentiment reflects broader macro adjustments following central bank actions. Gold faced fresh selling pressure above $4,300 an ounce early Thursday, pausing its attempt to rebound from the six-week low of $4,235 established directly after the US central bank's policy statements.
In digital assets, Bitcoin exchanged hands above $76,000 following the Federal Reserve's decision to raise its key interest rate by 25 basis points, moving the federal funds target range to 3.75%-4.00%. The unanimous 12-0 voting outcome represented the central bank's first rate increase since July 2023, injecting fresh volatility across foreign exchange, commodities, and risk assets worldwide.
