EUR/JPY Consolidates Below 186.00 as Bulls Target Year-To-Date High
The EUR/JPY cross-pair continues to consolidate around the 186.00 level, despite a slight decline of 0.06% in risk appetite due to the escalating US-Iran war.
This has led to a strengthening of safe-haven assets like the Japanese Yen, causing the EUR/JPY to edge down amid market fears that Japanese authorities may intervene in foreign exchange markets.
However, bulls seem to be gaining momentum, with the Relative Strength Index (RSI) indicating bullish territory. Buyers need to clear the 187.00 level to challenge the year-to-date high of 187.95, which would pave the way for further resistance at 189.00 and the psychological 190.00 level.
On the other hand, if sellers push the EUR/JPY below the July 20 low of 185.35, it could lead to a move towards the 50-day Simple Moving Average (SMA) at 185.20, followed by the 100-day SMA at 185.05, and then the 200-day SMA at 183.29.