The EUR/JPY cross has gained momentum, trading around 164.40 during Thursday’s early European session. The Japanese Yen (JPY) remains under pressure against the Euro (EUR), with uncertainty surrounding the timing of a potential rate hike by the Bank of Japan (BoJ) weighing on the currency.
Traders are awaiting key economic data, including the flash Eurozone Gross Domestic Product (GDP) for the third quarter (Q3), set to be released later today. Additionally, European Central Bank (ECB) President Christine Lagarde’s upcoming speech is expected to provide further market direction.
Technical Outlook for EUR/JPY
On the 4-hour chart, EUR/JPY is currently hovering around the key 100-period Exponential Moving Average (EMA) within a descending trend channel. A breakout above the 100-period EMA could signal a resumption of the uptrend, while further consolidation remains a possibility given the neutral momentum indicated by the Relative Strength Index (RSI), which sits near the midline.
The next significant resistance for EUR/JPY lies in the 164.95-165.00 range, marking the upper boundary of the trend channel and a key psychological level. If the cross manages to clear this resistance, it could extend gains toward 166.00, the high reached on November 7.
On the downside, initial support is found at the November 13 low of 163.64. A decisive break below this level could expose further downside toward 162.90, the lower limit of the trend channel. Extended losses beyond this point could open the door to a test of the 162.00 level, which coincides with the October 21 low and serves as a psychological support point.
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