EUR/JPY Price Analysis: The key upside barrier is seen at the 156.90–157.00 zone
|- EUR/JPY gains ground near 155.61 on Wednesday.
- The cross maintains a bearish outlook below the key EMA; the RSI indicator stands below the 50 midline.
- The first upside barrier will emerge at 156.38; 155.05 acts as an initial support level for EUR/JPY.
The EUR/JPY cross recovers some lost ground above the mid-155.00s during the early European session on Wednesday. The upside of the cross might be capped as investors anticipate that the Bank of Japan (BoJ) will abandon its ultra-loose monetary policy settings by the first half of 2024. At press time, EUR/JPY is trading at 155.61, gaining 0.16% on the day.
Technically, the bearish outlook of EUR/JPY remains intact as the cross holds below the 50- and 100-hour Exponential Moving Averages (EMAs) on the four-hour chart. The downward momentum is supported by the 14-day Relative Strength Index (RSI) which stands below 50 midline, indicating further downside looks favorable.
The first upside barrier will emerge near the 50-hour EMA at 156.38. Any follow-through buying above the latter will see a rally to the key resistance level at the 156.90–157.00 zone, portraying the confluence of the 50-hour EMA, the upper boundary of the Bollinger Band, and a psychological round mark. Further north, the next hurdle is seen at a high of December 20 at 157.73, en route to a high of December 27 at 158.38.
On the other hand, the lower limit of the Bollinger Band at 155.05 acts as an initial support level for EUR/JPY. The next contention is located near a low of December 15 at 154.40. The additional downside filter to watch is a low of December 14 at 153.85, followed by a low of December 7 at 153.16.
EUR/JPY four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.