- EUR/JPY is trading higher near 169.75 in the European session on Thursday, gaining 0.22% on the day.
- The cross maintains a positive stance above the key 100 EMA, with a bullish RSI indicator.
- The first barrier to the upside is seen at the psychological mark of 170.00; the initial support level is at 169.32.
EUR/JPY gains strength around 169.75 during the European session on Thursday. Uncertainty that the Bank of Japan (BoJ) will announce a reduction in monthly government bond purchases amid a weaker economy continues to undermine the Japanese Yen (JPY) and create a tailwind for EUR/JPY. Market participants await the Bank of Japan’s (BoJ) monetary policy meeting on Friday, which is expected to leave interest rates unchanged.
On the 4-hour chart, EUR/JPY maintains the bullish vibe unchanged as the cross is above the key 100 EMA. The bullish momentum is supported by the Relative Strength Index (RSI), which is in bullish territory near 58.0, supporting the buyers for the time being.
A decisive break above 169.75, the upper boundary of the Bollinger Band, will attract some buyers to the psychological level of 170.00. Further north, the additional upside filter to watch is 170.85, a June 3 high, en route to an all-time high of 171.60.
To the downside, the initial support level is at 169.32, the 100 EMA. A break of that level could pave the way towards 168.75, a June 12 low. Extended losses will see a drop to 168.40, the lower boundary of the Bollinger Band.
EUR/JPY 4-hour chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
