- EUR/JPY extended its gains to around 160.35 in early European trading on Thursday, gaining 0.15% on the day.
- The cross resumes the uptrend above the key 100-period EMA with a bullish RSI indicator.
- The immediate resistance level is located at 160.70. An important support level appears at the psychological level of 160.00.
The euro/yen cross was trading in positive territory for the fourth day in a row at around 160.35 in early European time on Thursday. The Japanese yen (JPY) fell on Thursday after Reuters reported that the Bank of Japan (BOJ) is considering keeping interest rates unchanged at next week's December meeting. “Policymakers want to spend more time scrutinizing overseas risks and clues about next year's wage outlook,” the person said. Later on Thursday, investors will closely monitor the European Central Bank's (ECB) interest rate decisions.
Technically, EUR/JPY will resume its uptrend on the 4-hour chart once the price crosses the key 100-period exponential moving average (EMA). This upward momentum is being supported by the Relative Strength Index (RSI), which remains above the midline near 59.45, supporting buys in the short term.
The first upside barrier for the cross appears at the December 11th high of 160.70. Continuing to trade above this level could pave the way to the upper bound of the uptrend channel at 161.10. The next potential resistance level is seen at 162.00, which represents the November 26th high and the round number.
On the other hand, if the psychological level of 160.00 is broken, the cross could be pulled down to the lower bound of the trend channel at 159.10. A sustained sell-off below the mentioned levels could result in a fall to the December 11 low of 158.65.
EUR/JPY 4-hour chart
