EUR/JPY Price Analysis: The key contention level will emerge at 160.40

EUR/JPY loses traction around 160.61 ahead of the German and Eurozone PMI data. 
The cross keeps the bullish vibe above the key EMA; RSI indicator stands below the 50 midline. 
The first upside barrier is seen at 161.56; the key support level will emerge at 160.40. 

The EUR/JPY cross extends its downside during the Asian trading hours on Wednesday. Investors await the German and Eurozone HCOB Purchasing Managers Index (PMI) reports on Wednesday for fresh impetus. The attention will shift to the European Central Bank (ECB) on Thursday, which is anticipated to maintain its benchmark policy. The cross currently trades near 160.61, losing 0.21% on the day. 

Technically, EUR/JPY maintains a bullish outlook as the cross holds above the 50- and 100-period Exponential Moving Averages (EMA) on the 4-hour chart. However, the Relative Strength Index (RSI) stands below the 50-midline, suggesting the sellers look to retain control in the near term. 

The first upside barrier for EUR/JPY will emerge at the upper boundary of the Bollinger Band at 161.56. A decisive break above the latter will expose a weekly high on January 23 at 161.70. The next hurdle is seen at a high of January 19 at 161.87.

 On the flip side, the key contention level for the cross is located near the confluence of the 50-period EMA and a weekly on January 23 at 160.40. Further south, the additional downside filter to watch is the 160.00 psychological round mark. A breach of this level will see a drop to the 100-hour EMA at 159.60, followed by a low of January 12 at 158.54.

EUR/JPY four-hour chart