- EUR/JPY attracts some sellers to near 163.15 in Monday’s early European session.
- The cross keeps bullish vibe above the 100-day EMA, but further consolidation cannot be ruled out with neutral RSI indicator.
- The immediate resistance level is seen at 164.26; the initial support level is located at 162.81.
The EUR/JPY cross tumbles to around 163.15 during the early European session on Monday. The Japanese Yen (JPY) strengthens against the Euro (EUR) as persistent trade-related uncertainties and geopolitical risks further boost the safe-haven flows. Additionally, the rising bets that the Bank of Japan (BoJ) will continue raising interest rates this year contribute to the JPY’s upside.
According to the daily chart, the constructive outlook of EUR/JPY remains in place as the price holds above the key 100-day Exponential Moving Average (EMA). Nonetheless, further consolidation cannot be ruled out in the near term, with the 14-day Relative Strength Index (RSI) hovering around the midline. This suggests neutral momentum in the near term.
The first upside barrier for the cross emerges at 164.26, the high of May 29. Any follow-through buying could set the stage for another push toward 164.80, the upper boundary of the Bollinger Band. The next hurdle to watch is 165.21, the high of May 13.
On the flip side, the first downside target to watch is 162.81, the low of May 30. A clean break below the mentioned level could open the door for a drop toward 162.15, representing the low of May 19 and the 100-day EMA. The next contention level is located at 161.65, the lower limit of the Bollinger Band.
EUR/JPY daily chart
