EUR/JPY Price Analysis: Snaps the two-day losing streak above the 159.00 mark
EUR/JPY rebounds to 159.25 ahead of the Eurozone Industrial Production data.
The cross keeps the bullish vibe unchanged above the key EMA; RSI indicator stands above the 50 midline.
The critical upside barrier is seen at 160.00; the key support level is located at the 158.30–158.40 zone.
The EUR/JPY cross snaps the two-day losing streak during the early European session on Monday. The European Central Bank (ECB) chief economist Philip Lane said on Saturday that the central bank will have important data by June to decide on a likely series of interest rate cuts, but moving prematurely may prove self-defeating. Investors anticipate that the ECB may cut interest rates sooner than anticipated. At the press time, EUR/JPY is trading at 159.25, gaining 0.36% on the day.
According to the four-hour chart, the bullish outlook of EUR/JPY remains intact as the cross holds above the 50- and 100-hour Exponential Moving Averages (EMA). The positive bias is backed by the 14-day Relative Strength Index (RSI) which stands above the 50 midline, indicating the further upside looks favorable.
The critical upside barrier is seen near a high of January 10, and the psychological round mark at 160.00. A break above the latter will see a rally to the upper boundary of Bollinger Band at 160.15. Any follow-through buying will pave the way to a high of December 1 at 161.77.
On the flip side, the key support level to watch is the confluence of the lower limit of the Bollinger Band and the 50-hour EMA at the 158.30–158.40 region. Further south, the next contention level is located at the 100-EMA at 157.95. A breach of this level will see a drop to a low of January 9 at 157.20.