- EUR/JPY gains traction around 162.35, gaining 0.26% on the day.
- The bullish outlook remains intact, as the cross still holds above the key 100-hour EMA.
- The key resistance level is located at 163.00; 161.62 acts as an initial support level for EUR/JPY.
The EUR/JPY cross snaps the four-day losing streak during the early European session on Wednesday. The cross bounces off the weekly low of 161.24 and climbs above the 162.00 mark. EUR/JPY currently trades around 162.35, up 0.26% on the day.
According to the four-hour chart, the bullish outlook remains intact as the cross still holds above the key 100-hour Exponential Moving Averages (EMAs) on the four-hour chart. Additionally, the Relative Strength Index (RSI) is located in the bullish territory above 50, indicating that further upside looks favorable.
The critical resistance level for the cross is seen at a psychologically round figure of 163.00. The next hurdle will emerge at the confluence of the upper boundary of Bollinger Band and a high of November 19 at the 163.50–163.55 zone. A break above the latter will see the rally to the year-to-date (YTD) high of 164.30.
On the downside, the 100-hour EMA at 161.62 acts as an initial support level for EUR/JPY. Further south, the cross will see the next downside target near the lower limit of the Bollinger Band at 161.13. A breach of the latter will see a drop to a low of November 7 at 160.43, followed by the psychological round figure at 160.00.
EUR/JPY four-hour chart
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