EUR/JPY forecast remains positive above 172.50 as Euro gains strength
On July 22, the EUR/JPY pair stayed strong around 172.60, holding above the important 100-day moving average. This level is seen as a key support, and staying above it shows a bullish EUR/JPY outlook.
The Japanese Yen is under pressure due to rising political uncertainty in Japan. Prime Minister Shigeru Ishiba plans to stay in office, but reports suggest his party might lose control of the Upper House. This could impact future economic and Bank of Japan policy, which is keeping the Yen weak.
From a technical analysis view, the RSI indicator is above 66, showing positive momentum. Traders are now watching the 173.11 resistance level. If the pair moves above this point, it could reach 173.75, which aligns with the top of the Bollinger Bands.
On the downside, immediate support levels are near 172.00–171.90. If EUR/JPY breaks below this zone, the next key levels to watch are 170.81 and 170.00.
Impact:
EUR/JPY might stay bullish if Japan’s political risks continue. Strong RSI and Euro strength could support further gains, but breaking key support may trigger a short-term drop.