The JPY complex are all higher (lower JPY) after BOJ Ueda gave a more dovish take after the rate decision today and risk on flows into US stocks after Microsoft and Meta beat expectations.
The move has the USDJPY sharply higher, but also the EURJPY which is stretching higher to a key 2025 ceiling defined by resistance highs between 164.07 and 164.17> There are 3 prior highs (see red numbered circles) that topped out in that narrow area since early 2025. As a result, this area represents a major decision point for buyers and sellers alike.
On the downside, price action is moving away from a previously stubborn swing area between 163.20 and 163.35 (see green numbered circles), which now acts as a near-term support zone. The bullish tilt is further reinforced by the pair pulling away from its cluster of moving averages, including:
-
The 100-day MA at 161.056 (the price has been above that MA since April 10)
-
The 200-day MA at 161.375 (above since April 23)
-
The 100 and 200 bar MAs on the 4-hour chart around 162.05
Momentum is shifting toward buyers as the technical backdrop improves. A break above 164.17 would open the door to further upside potential, while holding below keeps the pair locked in broad consolidation and the sellers in play, but it would taka a move back below 163.20 to 163.35 swing area. .
Key levels to watch:
-
Resistance: 164.07–164.17 (multi-month ceiling)
-
Support: 163.35, 163.20 (swing area), then 162.05 area (start of MA cluster)
EURJPY tests major ceiling at 164.07–164.17 as momentum builds
