EUR/JPY Bounces Off 186 Support, Eyes Higher Ground

The EUR/JPY pair has been showing signs of life after initially dropping in value against the Japanese yen on July 30, 2026. The Euro fell but rebounded, with support found at the 186 yen level.

Christopher Lewis, a technical analyst and market commentator at DailyForex, believes that this is a market trying to build up pressure to move higher. He thinks the Bank of Japan's stuck situation regarding interest rates will ultimately lead to a rise in value for the Euro against the Japanese yen.

The 188 yen level is seen as a key target by Lewis, who believes breaking above it could open up further gains. The 185 yen level and the 50-day EMA are also being closely watched as potential support levels.

Lewis notes that risk appetite has been failing but still favors the Euro due to interest rate differentials. He advises against shorting the pair, citing his lack of enthusiasm for owning the Japanese Yen in general.