- EUR/JPY faces some selling pressure to around 166.35 in Thursday’s early European session.
- The cross maintains a constructive view above the 100-day EMA, with a bullish RSI indicator.
- The immediate resistance level is seen at 167.62; the initial support level is located in the 166.05-166.00 zone.
The EUR/JPY cross attracts some sellers to near 166.35 during the early European trading hours on Thursday. The Japanese Yen (JPY) gathers strength against the Euro (EUR) as Middle East tensions dampen sentiment. Traders brace for Japan’s May National Consumer Price Index (CPI) data and Bank of Japan (BoJ) Monetary Policy Meeting Minutes, which will be published later on Friday.
Technically, EUR/JPY keeps the bullish vibe on the daily chart, with the price holding above the key 100-day Exponential Moving Average (EMA). The upward momentum is supported by the 14-day Relative Strength Index (RSI), which stands above the midline near 62.00. This suggests bullish momentum in the near term.
The first upside target to watch for the cross is seen at 167.62, the high of June 17. Extended gains could see a rally to the upper boundary of the Bollinger Band of 167.85. Further north, the next hurdle is located at the 170.00 psychological mark.
On the other hand, the initial support level for EUR/JPY emerges at the 166.05-166.00 region, representing the low of June 16 and the round figure. A breach of this level could expose 164.22, the low of June 6. The key contention level to watch is 162.88, the 100-day EMA.
EUR/JPY Daily Chart
