- EUR/JPY remains capped below 163.00 ahead of the Eurozone PMI data.
- The cross maintains a positive outlook above the 100-hour EMA; RSI indicator is located in the bullish territory above 50.
- The key resistance level is located at the 163.00–163.10 zone; 162.10 acts as an initial support level for EUR/JPY.
The EUR/JPY cross loses momentum after facing a rejection from 163.00 during the early European session on Thursday. As of writing, the cross is trading near 162.60, down 0.20% on the day. Investors await the preliminary Eurozone PMI data for fresh impetus. The downbeat reading could fuel the fear of a recession in the Eurozone and exert some selling pressure on the Euro (EUR) against the Japanese Yen (JPY).
Technically, EUR/JPY maintains a positive outlook on the four-hour chart as the cross holds above the key 100-hour Exponential Moving Averages (EMAs). Furthermore, the Relative Strength Index (RSI) is located in the bullish territory above 50, indicating that further upside looks favorable.
That being said, the key resistance level is located in the 163.00–163.10 area. The mentioned level is the confluence of the upper boundary of the Bollinger Band and a psychological round figure. The next upside barrier is seen at a high of November 19 at 163.55. A break above the latter will see the rally to the year-to-date (YTD) high of 164.30.
On the other hand, a low of November 22 at 162.10 acts as an initial support level for EUR/JPY. The additional downside filter to watch is the 100-hour EMA at 161.74. A breach of the latter will see a drop to the lower limit of the Bollinger Band at 161.33, followed by a low of November 7 at 160.43, and finally the round figure at 160.00.
EUR/JPY four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD turns negative near 1.0760
The sudden bout of strength in the Greenback sponsored the resurgence of the selling pressure in the risk complex, dragging EUR/USD to the area of daily lows near 1.0760.
GBP/USD comes under pressure and challenges 1.2500
GBP/USD now rapidly loses momentum and gives away initial gains, returning to the 1.2500 region on the back of the strong comeback of the US Dollar.
Gold retreats from highs on stronger Dollar, yields
XAU/USD trims part of its initial advance in response to the jump in the Dollar's buying interest and the re-emergence of the upside pressure in US yields.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Week ahead – US inflation numbers to shake Fed rate cut bets
Fed rate-cut speculators rest hopes on US inflation data. After dovish BoE, pound traders turn to UK job numbers. Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start.