EUR/JPY Plunges Below 100-Day SMA as Yen Strengthens

The EUR/JPY cross has softened to around 184.50 as it continues to trade with a bearish bias below its 100-day simple moving average (SMA). The pair's decline reflects a combination of a strong Japanese yen and persistent eurozone growth concerns, which are keeping sellers in control.

The 100-day SMA is currently at around 185.20, serving as a dynamic resistance level for the pair. As the price has consistently failed to reclaim this level, it reinforces the bearish sentiment. The next immediate support levels are near 184.00 and 183.50, which aligns with previous swing lows.

The Japanese yen's strength is being driven by safe-haven flows amid global economic uncertainty and expectations of a potential adjustment to its ultra-loose monetary policy. Meanwhile, the euro faces headwinds from soft economic data in the eurozone, particularly in the manufacturing sector, and the European Central Bank's cautious stance on further rate hikes.

For traders, the current setup suggests a cautious approach. A break below 184.00 could open the door for a deeper decline toward 183.00, while a sustained move above the 100-day SMA would invalidate the bearish thesis.