The EUR/JPY cross displayed renewed vigor near 161.10, ending a seven-day decline streak in today’s early European trading session. The Japanese Yen (JPY) faced diminished momentum following dovish remarks from a senior Japanese official. Bank of Japan (BoJ) Deputy Governor Shinichi Uchida indicated on Wednesday that the central bank would refrain from rate hikes during periods of market instability.
Analyzing the 4-hour chart, the prevailing bearish sentiment in EUR/JPY persists as the cross remains below the critical 100-period Exponential Moving Average (EMA). However, the Relative Strength Index (RSI) holding above the midpoint around 53.80 suggests potential upside movement in the near future.
In a bullish scenario, initial resistance is identified near 162.18, corresponding to the upper boundary of the Bollinger Band. Further upward movement could encounter resistance in the 162.90-163.00 region, characterized by both a psychological level and the high observed on August 1. Extended gains may push towards the 100-period EMA at 165.07.
Conversely, on the downside, initial support is observed at 157.30, reflecting the low reached on August 6. Further downward pressure could test the lower Bollinger Band boundary at 156.12, followed by the August 5 low of 154.41.
The EUR/JPY cross continues to navigate amidst volatile market conditions, influenced significantly by central bank policies and technical indicators signaling potential directional shifts in the near term.
Related Topics:
