EUR/JPY expands recovery up to a maximum of one year, the US NFP drives the feeling of risk

• The EUR/JPY rises to its highest level since July 2024, quoting above 170.00 in the American trading session.
• The PMI figures of the Eurozone improve in June, pointing out a modest rebound in the service activity.
• The technical panorama remains bullish, with RSI signs indicating overstrust conditions, although the impulse is still firm.

The Euro (EUR) firmly quotes against the Japanese Yen (JPY) on Thursday, with the EUR/JPY crossing at its highest level since July 2024 after the optimistic non -agricultural payroll data (NFP) of the US at the time of writing, the pair is going up, quoting around 170,40 during the American trading session.

The latest Non -Agricultural Payroll (NFP) report of the US was stronger than expected, with the economy by adding 147,000 jobs in June, exceeding market forecasts of 110,000 and slightly above the number of May 144,000. The data relieved concerns about the weakness of the labor market and helped boost the feeling of global risk, weighing on the Japanese Yen, considered safe refuge, while supporting the currencies linked to risk such as the euro.

Adding to the strength of the euro, the latest figures from the purchasing managers index (PMI) of the Eurozone pointed to a gradual recovery in economic activity. The PMI of final services rose to 50.5 in June from 50 in May, slightly above the preliminary estimate of 50, while the compound PMI climbed to a maximum of three months of 50.6 from 50.2 in May. Although manufacturing production remains moderate, the general improvement in the feeling suggests that the region is stabilizing, which offers additional favorable winds for the euro.

The European Central Bank (ECB) published the minutes of its June policy meeting on Thursday, showing that officials are not in a hurry to cut the interest rates even more. Those responsible for the policy recognized that inflation has returned to the objective of 2% of the ECB in June, but indicated substantial uncertainties, namely the appreciation of the euro of 14% so far this year and the persistent global commercial tensions around the US tariffs on inflation and trade before considering additional cuts. Some policy responsible indicated that a stronger euro could further slow down inflation, but could also harm exports and economic growth.

Technically, the EUR/JPY remains in a clear bullish trend, with the par quoting over its 9 -day exponential mobile average (EMA) in 169.22 and hugging the upper band of the Bollinger Canal. The relative force index (RSI) is 71.92, indicating that the torque is slightly overcompared, but still backed by a strong bullish impulse.

The immediate resistance is found in 171.09, which marks the maximum of July 23, 2024. A decisive breakdown above this level could pave the way for more profits towards the area of ​​172.00–173.00. Down, the initial support is observed in 169.22 (9 -day EMA), followed by 167.75, the middle line of the Bollinger band, which could act as a mattress during any short -term setback.