2026-10-23 Readings lean bearish
EUR/JPY Hits Multi-Month Lows as Risk Aversion and French Unrest Drive Yen Higher
The EUR/JPY pair is under pressure, trading near 175.952 as risk aversion sweeps global markets and bolsters the Japanese yen. The euro faces additional headwinds from political unrest in France, keeping the cross heavy ahead of key economic data.
Trend and momentum
The 4-hour trend structure is down, while the 1-hour structure is ranging. Momentum is weak, with the 1-hour RSI at 40.2 and the 4-hour RSI at 35.9. The 1-hour Bollinger Bands are inside with no squeeze, and the pair has used 87% of its average daily range today.
Key levels
Key levels to watch include today's high at 176.178 and low at 175.200. A break above the previous day's high of 177.760 or the 4-hour high of 177.922 could signal a shift in momentum, while a drop below the previous day's low of 175.544 or the 4-hour low of 175.200 would reinforce the bearish trend.
News and events this week
This week features significant economic events for both currencies. Japan releases its National Core CPI on October 22 and flash PMIs on October 23, ahead of the Bank of Japan's monetary policy meeting on October 30. For the euro, French flash services PMI and broader Eurozone flash PMIs are scheduled for October 23.
What would push it higher
If risk sentiment improves and Eurozone PMIs surprise to the upside, the pair could find support and attempt a recovery.
What would push it lower
If Japanese inflation data comes in hot or risk aversion deepens, the yen could strengthen further, pushing the pair lower.
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