EUR/JPY advances as Japanese Yen falters on fiscal, political instability

💡 DMK Insight

EUR/JPY’s bounce back to 185.10 is more than just a number—it’s a signal for traders. Reclaiming this level after a 0.55% rise indicates a potential shift in sentiment, especially with the Euro showing resilience against the Yen. This could be tied to broader economic indicators, such as the ECB’s stance on interest rates and Japan’s ongoing monetary easing. If EUR/JPY can hold above 185, it might attract more bullish positions, potentially targeting higher resistance levels. Watch for any news from the ECB or BOJ that could impact this pair, as volatility could spike around those announcements. On the flip side, if the pair fails to maintain this level, it could trigger a wave of selling, especially among retail traders looking for quick gains. Keep an eye on the daily chart for any signs of reversal patterns or bearish divergence, which could indicate a pullback. The key here is to monitor 185 closely—if it holds, it could pave the way for further upside, but a drop below could signal a shift in momentum.