EUR/JPY Price Analysis: Extends its upside, the next hurdle is seen at 169.40
|- EUR/JPY gains momentum near 169.20 in Friday’s early European session.
- The cross keeps the bullish vibe unchanged above the key EMA, with the RSI indicator standing above the 50-midline.
- The first upside barrier is seen at 169.40; 167.80 acts as an initial support level.
The EUR/JPY cross extends the rally around 169.20 during the early European trading hours on Friday. The Japanese Yen (JPY) has weakened as Japan's economy contracted more than expected in the first quarter (Q1) of 2024, challenging the Bank of Japan's (BoJ) push to get interest rates further away from near zero. On Friday, the BoJ left the amount of bonds it buys at regular operations unchanged, adding to a modest dip in the JPY after helping the currency earlier in the week with a surprise reduction in purchases, per Bloomberg.
Technically, EUR/JPY maintains the bullish outlook unchanged as the cross holds above the 100-period Exponential Moving Averages (EMA) on the four-hour chart. The upward momentum is backed by the Relative Strength Index (RSI), which stands in bullish territory near 62.60, supporting the buyers for the time being.
The immediate resistance level for the cross will emerge near a high of May 15 at 169.40. The additional upside filter to watch is the 170.00 psychological round figure. A decisive break above the latter will see a rally to the next barrier around a high of April 29 at 171.60.
On the flip side, the first downside target is seen at the 100-period EMA at 167.80. Further south, the next contention level is located near a low of May 16 at 167.33, followed by a low of April 29 at 165.66.
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.