EUR/JPY Surges Toward Channel Top as Focus Shifts from Intervention

The EUR/JPY currency cross is on an upward trajectory after rebounding from its ascending channel bottom. It has been trading around 185.80 during Asian hours on Tuesday, with technical analysis indicating a bullish bias. The daily chart shows the currency remains within the ascending channel pattern, signaling ongoing upside momentum.

The EUR/JPY cross holds above both the nine-day and 50-day Exponential Moving Averages (EMAs), and its 14-day Relative Strength Index (RSI) at 59.45 stays in positive territory. This suggests firm but not overstretched upside momentum.

Scotiabank strategists note that the recent Yen narrative is evolving, with markets moving away from official intervention risk and focusing on fundamentals ahead of the September 18 BoJ meeting. This shift in focus is shaping positioning in JPY.