## The EUR/JPY pair maintains positions above 183.50: Bollinger Band technical signals indicate a potential breakout

Trading the EUR/JPY pair continues to develop amid market turbulence, where the monetary policy stance of the two central banks plays a key role. In recent trading sessions, the quotes have held near the psychological level of 183.50, supported by a weakening of the Japanese currency.

### Economic Factors: Uncertainty Regarding the Trajectory of Rates

The situation with interest rates determines the current dynamics of the pair. The Bank of Japan's leadership remains cautious in its communications regarding future monetary policy steps. Kazuo Ueda recently stated that further rate hikes will only be considered if inflationary trends are consistently confirmed. Market participants are focusing on spring union negotiations, the results of which could signal the central bank's readiness to act mid-year.

In contrast, the European Central Bank's position appears more stable. The ECB maintains rates unchanged, and economists forecast they will remain at current levels at least until 2026. This contrast in monetary policies is contributing to the euro's strengthening against the yen, as investors favor higher-yielding assets.

### Technical Picture: Bollinger Bands and Control Points

The daily chart shows a clear structure, with the pair positioned significantly above the 100-day exponential moving average (EMA) at 178.25. The long-term moving average maintains an upward trajectory, confirming the dominance of a bullish trend in the market.

On the Bollinger Bands, an interesting situation is observed: the bands have narrowed, signaling decreased volatility and a consolidation period after the previous jump. The pair is trading near the middle line of the bands, indicating a balance of forces. The upper band is at 185.00, and the lower is around 181.87.

The RSI indicator stands at 55.91, reflecting moderate positive momentum but far from extreme values. This suggests that acceleration remains possible under favorable conditions.

### Development Scenarios and Entry Points

A breakout of the Bollinger Bands upward with a close above 185.01 could trigger a new wave of growth. Conversely, a decline below the lower band at 181.87 would again push the quotes toward the 100-day EMA at 178.25, where the first support line is located.

The current situation is characterized as technically strong but showing signs of oscillation before a decisive move. How the pair reacts to the narrowing of the Bollinger Bands will be crucial in determining the future direction over the coming weeks.

_(This analysis is prepared based on technical and macroeconomic indicators.)_