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Introduction to EUR/JPY

The EUR/JPY currency pair—often referred to as “the Dragon”—represents the exchange rate between the Euro (EUR) and the Japanese Yen (JPY). It’s one of the most traded pairs in the forex market, known for its volatility and trend-driven movements. The pair attracts both short-term traders and long-term investors due to its sensitivity to global risk sentiment, monetary policy divergence between the European Central Bank (ECB) and the Bank of Japan (BoJ), and macroeconomic data releases from both regions.

EUR/JPY Market Overview

As of the latest daily analysis, the Euro is showing resilience against the Japanese Yen, supported by improving inflation indicators in the Eurozone and expectations of steady consumer spending data. The European side has seen a string of important economic indicators—such as Germany’s Import Price Index, Real Retail Sales, and multiple Consumer Price Index (CPI) releases from France, Italy, and the Eurozone—suggesting stable price growth momentum. This reinforces expectations that the ECB will maintain a cautious but steady monetary stance. Meanwhile, in Japan, attention is on Tokyo’s CPI and unemployment rate releases, both scheduled for November 28, 2025, alongside data from METI and MLIT covering industrial production, retail trade, and housing starts. These upcoming reports will shed light on the strength of Japan’s domestic recovery. However, with inflationary pressures still subdued, the Bank of Japan’s ultra-loose policy remains a drag on the Yen. As a result, EUR/JPY continues its bullish momentum, trading close to multi-year highs around the 178.00–179.00 zone.

EUR/JPY Technical Analysis

On the daily timeframe (D1), the EUR/JPY pair is moving within a strong ascending trend, respecting the rising trendline visible since late 2024. The price currently trades in the upper half of the Donchian Channel, with the upper band positioned around 178.80, indicating bullish control. The Fisher Transform indicator shows the Fisher line at 2.24 and the Trigger line at 1.96, confirming strong bullish momentum and suggesting continued upward pressure. Additionally, the Rate of Change (ROC) stands at 1.40, reinforcing the pair’s ongoing strength and positive price acceleration. The rising trendline near 166.00–168.00 acts as long-term support, while the Donchian basis line at 175.50 offers intermediate backing. Resistance is seen at 179.00, a psychological level that could trigger consolidation or a short-term correction. If the pair breaks above this resistance, it could target the 180.50–182.00 region, marking new yearly highs.

Final Words about EUR vs JPY

The Euro vs Japanese Yen (EUR/JPY) pair maintains a bullish outlook in the short to medium term. Market sentiment favors the Euro as inflation readings remain steady across major Eurozone economies, supporting a stable policy outlook from the ECB. On the other hand, Japan’s data suggests a continuation of accommodative policy, weighing on the Yen’s strength. Traders should monitor upcoming CPI and retail data releases from both regions, as these could reinforce or challenge the current momentum. Overall, as long as EUR/JPY holds above the 175.00–175.50 support zone, the bias remains upward, with potential targets extending toward 180.00–182.00 in the coming weeks. A decisive daily close above the 179.00 resistance could confirm further bullish continuation toward new highs.

Disclaimer: This EURJPY analysis, provided by Unitedpips, is for informational purposes only and does not constitute trading advice. Always conduct your own Forex analysis before making any trading decisions.