The EUR/JPY currency pair experienced a decline after modest gains, trading near 183.80 during Asian hours on Tuesday. This movement reflects a shift in market sentiment as the pair pulled back from earlier levels.
According to FX Street, the relative strength index (RSI) stood at 47.63, indicating bearish momentum since it remains below the neutral 50 line. This suggests that sellers currently have the upper hand in the short term.
For Japanese investors and traders, keeping an eye on EUR/JPY is important given its sensitivity to both European and Japanese economic developments, which can influence risk appetite and cross-border capital flows.