EUR/JPY Price Forecast: Bulls, Bears Battle Around 200-Hour SMA Near Mid-162.00s

EUR/JPY Price Forecast: Bulls and Bears Battle Around 200-Hour SMA Near Mid-162.00s

The EUR/JPY currency pair experienced some selling pressure during the Asian session on Tuesday, dipping to the 162.00 level as the initial relief from the delay in EU tariffs faded. However, buyers stepped in to support the price, and the pair has recovered slightly, trading just above the mid-162.00s and holding relatively steady on the day.

From a technical perspective, the EUR/JPY chart shows caution for bulls. Both hourly and daily oscillators are struggling to gain strong bullish momentum, and the pair has repeatedly failed to break above the 200-hour Simple Moving Average (SMA), currently positioned around 162.75. This resistance level is crucial—sustained strength above it would be necessary to support further upward movement.

If EUR/JPY can break and hold above the 200-hour SMA, it could signal that the recent pullback from the year-to-date high near 165.20 is over, setting the stage for a rally towards the 163.00 level and potentially higher to the 163.40-163.45 supply zone. The psychological 164.00 level remains a key target for bulls.

On the downside, a decisive drop below the 200-day SMA could accelerate bearish momentum and open the way for further declines, suggesting traders should remain cautious before committing to long positions.

In summary, the battle between bulls and bears near the 200-hour SMA will likely dictate the near-term direction of EUR/JPY, making it important for traders to watch this key technical level closely.