EUR/JPY Price Forecast: Gains Momentum Above 185.00, Bullish Signals Keep Uptrend Intact

EUR/JPY extended its gains during early European trading on Thursday, currently trading near 185.13. Earlier, disappointing domestic gross domestic product data from Japan weakened the yen's safe-haven appeal, providing upward momentum for the cross pair.

**Weak Japan GDP Weighs on Yen Performance**

Latest data showed sluggish economic growth in Japan, cooling market expectations for further monetary policy tightening by the Bank of Japan in the near term, leading to broad yen weakness against major currencies. Against this backdrop, EUR/JPY found buying support, steadily climbing from the earlier 185.00 level to the 185.20 region. Yen softness has become the core factor driving the pair's upside at present.

**Technical Bullish Signals Remain Solid**

On the daily chart, EUR/JPY holds firmly above the 100-day exponential moving average at 179.43, maintaining a strong uptrend. The price is approaching the upper Bollinger Band at 185.45, with the band width showing signs of expansion, indicating robust market momentum and increasing volatility. The technical pattern suggests that as long as the pair stays firmly above the key moving average, the overall bullish structure will not easily change.

**Focus on Resistance Breakout Ahead**

Market updates indicate that if EUR/JPY effectively breaks above the recent consolidation range, it could trigger a new round of bullish movement, with the upside target pointing to the historical high of 187.95 set on April 17. However, short-term volatility may intensify as the price approaches the upper Bollinger Band resistance. JPMorgan Private Bank's Asia strategy team noted in a recent report that Japan sits at the intersection of three major themes—global geopolitical fragmentation, the AI revolution, and structural shifts in inflation—and its currency movements will be influenced by both policy and external conditions.