EUR/JPY Price Analysis: The critical upside barrier is seen at the 160.00 mark
- EUR/JPY weakens amid the geopolitical tensions in the Middle East.
- The cross maintains a positive outlook above the key EMA; RSI indicator stands in a bullish zone above the 50 midline.
- The key resistance level will emerge at 160.00; the initial support level is seen at 158.60.
The EUR/JPY cross trades on a softer note for the second consecutive day during the early European session on Friday. The risk-off mood due to a further escalation of geopolitical tensions in the Middle East boosts the safe-haven currency like the Japanese Yen (JPY) and acts as a headwind for the EUR/JPY cross. The cross currently trades near 159.30, down 0.15% for the day.
Technically, EUR/JPY keeps the bullish vibe unchanged as the cross holds above the key 100-hour Exponential Moving Averages (EMA) on the four-hour chart. The upward momentum is also supported by the 14-day Relative Strength Index (RSI) which stands above 50 midline, indicating the path of least resistance level is to the upside.
The key resistance level will emerge near a high of January 10 at the 160.00 psychological round mark. Any follow-through buying above the latter will see a rally to the upper boundary of Bollinger Band at 160.62. Further north, the next upside barrier is seen near a high of December 1 at 161.77.
On the downside, the initial support level for EUR/JPY is seen near a high of January 4 at 158.60. The additional downside filter to watch is the 50-EMA at 158.25, followed by the 100-EMA at 157.82. A breach of this level will see a drop to the lower limit of the Bollinger Band at 157.09.
EUR/JPY four-hour chart
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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.
