EUR/JPY expands profits as the yen weakens

• The EUR/JPY expands the profits on Friday, bouncing a two -day loss streak.
• The crossing is quoted around 172.40, its highest level since July 17, 2024.
• The technical structure remains bullish, with the RSI in 72.85 pointing out overcompra conditions, but without reversion signs.

The Euro (EUR) extends its advance against Japanese Yen (JPY) on Friday, bouncing a two -day losses run while the Japanese currency remains widely weaker in front of its main peers. The crossing EUR/JPY He has been quoting upwards during the last seven weeks, backed by a divergence of sustained policies between the European Central Bank (ECB) and the Bank of Japan (Boxwood).

The EUR/JPY crossing is going up during American negotiation hours. At the time of writing, around 172.40 is quoted, a level that was not seen since July 17, 2024, marking a new maximum of the year to date. The torque has risen 0.67% in the day, supported by the widespread weakness of YEN and an upward impulse sustained amid the continuous divergence of policies between the European Central Bank (ECB) and the Bank of Japan (BOJ).

The ECB has firmly changed to a cycle of feat cuts, since inflation shows lighter setback signals towards the 2%target. While the ECB seeks to balance pricing stability with economic growth, recent statements suggest that the current cycle of rates cuts may be close to its end, recognizing persistent uncertainties, particularly those derived from global commercial policies. On the other hand, the BOJ has adopted a more cautious approach towards policy standardization, maintaining its reference rate at 0.50% since January. The BOJ has also announced a gradual reduction in JGB purchases, pointing out a slow dismantling of the stimulus while remaining focused on holding a healthy cycle of wages and prices. This divergence in the rhythm and direction continues to drive the bullish impulse at the EUR/JPY crossing.

Technically, the EUR/JPY maintains its upward trajectory, quoting about 172.40 during the American session on Tuesday. The crossing remains well supported above the simple mobile average (SMA) of 20 days ascending, currently in 169.42, which also serves as the midline of the Bollinger bands. The cross continues to press against the upper limit of the Bollinger bands, reflecting a sustained bullish impulse. The recent rupture above the psychological level of 170.00 has further reinforced the upward structure, without immediate exhaustion signs.

Impulse indicators further support the bullish bias. The relative force index (RSI) is located at 72.85, indicating overcompra conditions but still without pointing out a reversal, suggesting that the purchase pressure remains intact. The average directional index (ADX) is on the rise and is currently 43.72, indicating a strong trend in progress.

Down, the immediate support is at the psychological level of 170.00, followed by the Bollinger average band near the level of 169.50. While these levels are maintained, the broadest bias is still inclined to the rise, with potential for the torque to prove the area of ​​173.00-174.00 in the next sessions.