Navigating the Upside: EUR/JPY Eyes Higher Targets

EUR/JPY holds above the 165 level as demand for safe-haven assets decreased.  It hit a high of 165.88 at the time of writing and is currently trading around 165.83. Intraday outlook is bullish as long as the support of 164.50 holds.

Despite uncertainty surrounding US tariff policy, the Bank of Japan (BoJ) is expected to maintain interest rates until at least 2025, as per a Reuters poll conducted in early June 2026. Of the 60 economists who were surveyed, none expected rate hikes at next month's June policy meeting, and a slight majority now expect the next hike to occur in early 2026 rather than later this year. This is a marked change from the previous month when most economists predicted rate hikes by the end of 2025. The BoJ's cautious approach is a result of worries that US trade measures could hinder both Japanese and global economic growth, leading the central bank to maintain its policy rate at 0.5% for the time being.

Technical Analysis:

The EUR/JPY pair is trading above  55 EMA,    200 and above 365-H EMA  on the 4-hour  chart.

• Near-Term Resistance: Around 166  a breakout here could lead to targets at 166.65/167/167.75.
   
• Immediate Support: At 165.30 if breached, the pair could fall to 164.50/163.85/163.50/  163/162.75/162/161.49/160.50/160/  159.25/158.85/158.25.
  
  Indicator Analysis 4-hour chart):
• CCI (50): Bullish
   
• Average Directional Movement Index: Bullish

Overall, the indicators suggest bullish trend

Trading Recommendation:

It is good to buy on dips around 165.35 with a stop loss at 164.50 for a TP of 167/168.