EUR/JPY rises after registering losses in the previous day, trading around 183.10 during the European hours on Monday. The currency cross is holding a capped tone as it sits below the 50-day Exponential moving average (EMA) while clinging to short-term support at the nine-day EMA. This configuration suggests a corrective phase within the broader uptrend, with sellers retaining the upper hand while the 14-day Relative Strength Index (RSI) around 44 hints at still-soft but stabilizing bearish momentum after the recent slide.

Yen positioning shift seen as response to Japan intervention

Strategists at Societe Generale argue that the recent positioning adjustment in the Yen futures market is being driven primarily by official action rather than a genuine change in sentiment. They highlight that the sharp drop in speculative exposure, with the “collapse in Short Yen CFTC positions to 10.8%,” is “a reflection of MoF intervention, not a reflection of greater optimism that the currency has fundamentally turned.”

A pullback below the nine-day EMA at 183.06 would reinforce the bearish bias and put downward pressure on the EUR/JPY cross to navigate the region around the eight-month low of 179.37, reached on August 3, followed by the nine-month low of 175.70.

On the upside, the EUR/JPY cross could find initial resistance at the 50-day EMA at 184.57. Further advances above the medium-term moving average would cause a bullish emergence and support the currency cross to explore the region around the all-time high of 187.95, which was recorded on April 17.

(The technical analysis of this story was written with the help of an AI tool. Know more.)