EUR/JPY Price Analysis: Gains traction near the 158.00 mark ahead of German Retail Sales, Bull cross eyed
|- EUR/JPY hovers around 158.00; Relative Strength Index (RSI) stands in bullish territory above 50.
- The 50-hour EMA is on the verge of crossing above the 100-hour EMA.
- The immediate resistance level for the cross is 158.15; the key support level is seen at 157.50.
The EUR/JPY cross holds positive ground near 158.00 during the Asian session on Friday. Market players await the German Retail Sales data for fresh impetus. The annual figure for August is expected to drop 0.7% from the previous reading of a 2.2% fall. The report could trigger the volatility in the cross.
From a technical perspective, EUR/JPY holds above the 50- and 100-hour Exponential Moving Averages (EMAs) on the one-hour chart. It’s worth noting that the 50-hour EMA is on the verge of crossing above the 100-hour EMA. If a decisive crossover occurs on the one-hour chart, it would validate a Bull Cross, highlighting the path of least resistance for EUR/JPY is to the upside.
The immediate resistance level for the cross is located near the upper boundary of the Bollinger Band at 158.15. A break above the latter will see the next barrier at 158.45 (a high of September 20). Further north, the additional upside filter is seen around a high of September 13 at 158.65, followed by a Year-To-Date (YTD) high of 159.76.
On the flip side, the convergence of the 50-hour EMA and 100-hour EMA at 157.50 will be the key support level for EUR/JPY. The next contention level will emerge at 157.20, representing the lower limit of the Bollinger Band. Any follow-through selling below the latter will see a drop to 156.95 (a low of September 27), and finally at 156.70 (a low of September 28).
Meanwhile, the Relative Strength Index (RSI) stands in bullish territory above 50, supporting the buyers for now.
EUR/JPY one-hour chart
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