EUR/JPY Price Analysis: The next downside target is located at 161.10
|- EUR/JPY trades in negative territory for the fourth consecutive day around 161.85 in Friday’s early European session.
- The cross keeps the bearish vibe unchanged below the key EMA; RSI momentum indicator supports the downside.
- The immediate resistance level is seen at 162.30; 161.10 acts as an initial support level.
The EUR/JPY cross remains under some selling pressure below the 162.00 psychological barrier during the early European session on Friday. The growing speculation that the Bank of Japan (BoJ) could remove negative interest rates this month lifts the Japanese Yen (JPY) against the Euro (EUR). At press time, EUR/JPY is trading at 161.85, down 0.16% on the day.
From a technical perspective, EUR/JPY maintains a bearish outlook as the cross holds below the 100-period Exponential Moving Averages (EMA) on the four-hour chart. The downward momentum is supported by the Relative Strength Index (RSI), which lies below the 50-midline, indicating the path of least resistance is to the downside.
The immediate resistance level for EUR/JPY is seen at the 100-period EMA around 162.30. The key hurdle will emerge at the 162.95-163.00 region, representing a high of March 6 and a psychological round figure. Further north, the next upside barrier is located at a high of March 4 at 163.50 and the upper boundary of the Bollinger Band at 163.71.
On the downside, the lower limit of the Bollinger Band at 161.10 acts as an initial support level for the cross. The additional downside filter to watch is a low of March 7 at 160.55, followed by a psychological round mark at 160.00.
EUR/JPY four-hour chart
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