EUR/JPY Price Analysis: Advances above the 156.00 area following Japanese CPI

EUR/JPY gains momentum above the 156.00 area following the Japanese CPI data.
EUR/JPY holds above the 100- and 200-hour EMAs.
The cross will meet the immediate resistance at 156.90; 155.00 is a critical support level.

Lallalit Srijandorn FXStreet

EUR/JPY gains traction above the key 156.00 area during the early Asian session on Friday. According to the four-hour chart, EUR/JPY holds above the 100- and 200-hour Exponential Moving Averages (EMA), which means further upside looks favorable.

The Japan Statistics Bureau revealed that June's National Consumer Price Index (CPI) inflation rose from 3.2% to 3.3% YoY, versus 3.5% expected. Japanese policymakers are likely to maintain an ultra-easy monetary policy next week. This, in turn, led to the weakening of the Japanese Yen against its major rivals due to monetary policy divergences.

On the other side, concern about the economic slowdown in the Eurozone, which could push back a hawkish stance from the European Central Bank (ECB), might exert downside pressure on the Euro.

Therefore, the cross could meet the immediate resistance level of 156.90 (High of June 22). The 158.00 area appears to be a tough nut to crack for EUR/JPY. The mentioned level represents a psychological round mark and a year-to-date (YTD) high. Any meaningful follow-through buying will see a rally to the next round level hurdles at 159.00 and 160.00.

On the flip side, any extended weakness below 155.00 will challenge the initial support level of 154.60, representing the 200-hour EMA. The additional downside filter to watch is 154.25 (Low of June 20) en route to 153.40 (Low of June 12). Further south, the cross will see a drop to 152.70 (Low of June 15).

The Relative Strength Index (RSI) stands below 50, within the bearish territory, suggesting that sellers are likely to retain control in the near term.

EUR/JPY four-hour chart

EUR/JPY

Overview
Today last price	156.01
Today Daily Change	0.11
Today Daily Change %	0.07
Today daily open	155.9

Trends
Daily SMA20	156.36
Daily SMA50	152.99
Daily SMA100	149.17
Daily SMA200	146.19

Levels
Previous Daily High	156.62
Previous Daily Low	155.87
Previous Weekly High	156.67
Previous Weekly Low	153.43
Previous Monthly High	158
Previous Monthly Low	148.62
Daily Fibonacci 38.2%	156.16
Daily Fibonacci 61.8%	156.34
Daily Pivot Point S1	155.64
Daily Pivot Point S2	155.38
Daily Pivot Point S3	154.88
Daily Pivot Point R1	156.39
Daily Pivot Point R2	156.89
Daily Pivot Point R3	157.15

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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