EUR/JPY Price Analysis: Holds below 161.00 ahead of ECB rate decision

EUR/JPY rebounds to 160.75 ahead of the ECB rate decision.
The cross maintains a bullish outlook above the key Exponential Moving Averages (EMA).
The immediate resistance level is seen at 161.40; 160.30 acts as an initial support level for the cross.

Lallalit Srijandorn FXStreet

The EUR/JPY cross recovers some lost ground near 160.75 during the early European session on Thursday. The weaker-than-expected German and Eurozone PMI data for January weigh on the Euro (EUR) and act as a headwind for EUR/JPY. Investors await the European Central Bank (ECB) monetary policy meeting on Thursday, with no change in rate expected.

According to the four-hour chart, the bullish potential of EUR/JPY remains intact as the cross holds above the 100-period Exponential Moving Averages (EMA). It’s worth noting that the Relative Strength Index (RSI) stands below the 50-midline, indicating that further decline cannot be ruled out in the near term.

The upper boundary of the Bollinger Band at 161.40 acts as an immediate resistance level for the cross. The additional upside filter will emerge at a high of January 23 at 161.70, followed by a high of January 19 at 161.87.

On the other hand, the lower limit of the Bollinger Band at 160.30 acts as an initial support level for EUR/JPY. The crucial contention level is seen near a low of January 24 and a psychological mark at 160.00. A breach of this level will see a drop to the 100-period EMA at 159.72.

EUR/JPY four-hour chart

EUR/JPY

Overview
Today last price	160.71
Today Daily Change	0.11
Today Daily Change %	0.07
Today daily open	160.6

Trends
Daily SMA20	158.83
Daily SMA50	159
Daily SMA100	158.84
Daily SMA200	156.32

Levels
Previous Daily High	161.21
Previous Daily Low	159.98
Previous Weekly High	161.87
Previous Weekly Low	158.63
Previous Monthly High	161.78
Previous Monthly Low	153.17
Daily Fibonacci 38.2%	160.45
Daily Fibonacci 61.8%	160.74
Daily Pivot Point S1	159.99
Daily Pivot Point S2	159.37
Daily Pivot Point S3	158.76
Daily Pivot Point R1	161.21
Daily Pivot Point R2	161.82
Daily Pivot Point R3	162.44

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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