Euro Faces Mixed Outlook as EUR/USD Weakens While EUR/JPY Attempts Recovery

The euro is showing mixed performance across major currency pairs, but overall price action still points toward selective downside risks ahead. EUR/USD is increasingly being driven by US dollar strength again, with stronger negative correlation to the dollar index and weakening technical momentum suggesting the pair may be preparing for another move lower.

Technically, EUR/USD remains vulnerable after breaking below the rising wedge pattern. While a short-term bounce from support near 1.17 is still possible, failure to hold this level could expose further downside toward 1.1655 and the 1.16 area.

EUR/USD Daily Chart

Meanwhile, EUR/JPY is attempting to recover after suspected intervention by Japan’s Ministry of Finance triggered a sharp yen rally earlier this month. The pair has regained roughly half of those losses and short-term price action remains constructive, with dips currently favoured while volatility stays low. EUR/JPY could extend toward 186 in the near term, although further upside may depend on whether Japanese authorities step in again to support the yen.

EUR/JPY Daily Chart