EUR/JPY Surges Above 162.70 as Bulls Regain Momentum Over 200-Day SMA

EUR/JPY Price Forecast: Surges to Over Mid-162.00s as Bulls Hold Above 200-Day SMA

The EUR/JPY currency pair started the new week with renewed strength, climbing above the mid-162.00s and reversing a three-day decline that had pushed the pair toward a one-month low near the 161.00 level. The rebound comes as the Euro gained support following U.S. President Donald Trump’s decision to delay the imposition of tariffs on the European Union, boosting overall market optimism.

From a technical perspective, the pair showed resilience around the 200-day Simple Moving Average (SMA) late last week, and its ability to sustain levels above that indicator adds to the bullish outlook. However, traders are advised to proceed with caution. While momentum favors the bulls, neutral readings on daily oscillators and uncertainty stemming from divergent monetary policy expectations between the European Central Bank (ECB) and the Bank of Japan (BoJ) add a layer of risk.

The immediate resistance lies at the 163.00 psychological mark. A sustained move above this level could confirm the end of the recent correction from the 165.20 year-to-date high and open the path toward retesting the 163.40–163.45 supply zone and the key 164.00 handle.

Conversely, failure to hold above the 200-day SMA would weaken the bullish case and shift short-term momentum back in favor of bears.

Market participants will also monitor further developments in EU-US trade relations and central bank signals for clues about the next directional move.