EUR/JPY Price Analysis: The bearish vibe remains intact below the mid-161.00s

EUR/JPY trades on a softer note near 161.30 amid the growing possibility of a March rate hike from the BoJ.
The cross maintains the bearish tone below the key EMA; RSI momentum indicator lies below the 50-midline.
The first upside barrier is seen at 161.65; the initial support level for the cross is located at 160.87.

Lallalit Srijandorn FXStreet

The EUR/JPY cross edges lower to 161.30 during the early European session on Wednesday. Most companies have agreed to offer sizeable pay increases at annual talks with trade unions, paving the way for the Bank of Japan (BoJ) to end negative interest rates as early as next week. This, in turn, lifts the Japanese Yen (JPY) and creates a headwind for the EUR/JPY cross.

According to the four-hour chart, EUR/JPY keeps the bearish vibe unchanged as the cross holds below the 50- and 100-period Exponential Moving Averages (EMA). Furthermore, the Relative Strength Index (RSI), which lies below the 50-midline, supports the sellers for the time being.

The key upside barrier for EUR/JPY will emerge at the confluence of the upper boundary of the Bollinger Band and the 50-period EMA at 161.65. Further north, the next hurdle is seen at the 100-period EMA at 161.85. Any follow-through buying above this level will see a rally to a high of March 8 at 162.17, followed by a high of March 6 at 162.95.

On the other hand, the initial support level for the cross is located at a low of March 12 at 160.87. The next contention level is seen at the lower limit of the Bollinger Band 160.25. The additional downside filter to watch is a psychological round mark at 160.00.

EUR/JPY four-hour chart

EUR/JPY

Overview
Today last price	161.3
Today Daily Change	-0.05
Today Daily Change %	-0.03
Today daily open	161.35

Trends
Daily SMA20	162.29
Daily SMA50	160.81
Daily SMA100	160.08
Daily SMA200	158.45

Levels
Previous Daily High	161.63
Previous Daily Low	160.28
Previous Weekly High	163.52
Previous Weekly Low	160.56
Previous Monthly High	163.72
Previous Monthly Low	158.08
Daily Fibonacci 38.2%	161.11
Daily Fibonacci 61.8%	160.8
Daily Pivot Point S1	160.55
Daily Pivot Point S2	159.74
Daily Pivot Point S3	159.2
Daily Pivot Point R1	161.9
Daily Pivot Point R2	162.44
Daily Pivot Point R3	163.24

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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