EUR/JPY Trades Near 187.00 as Japan Holds Modest Bid Ahead of Central Bank Events

The EUR/JPY currency cross is trading near the 187.00 level after pulling back from the ascending channel top.

The Relative Strength Index (RSI) is at 64.1, indicating firm upside momentum.

Strategists at Scotiabank note that the Japanese Yen is holding a modest bid ahead of key central bank events, with the currency “up a fractional 0.1% vs. the USD but outperforming most of the G10 currencies in overall quiet trade as markets look to both the 2pm ET FOMC and the July 31 BoJ policy decision.”

The EUR/JPY cross faces its primary support at the nine-day EMA of 186.52, with additional technical buffers lying just below.