EUR/JPY Price Analysis: The next upside barrier is located near 157.70
EUR/JPY holds positive ground near 157.10 on Thursday. The cross resumes its uptrend above the key 100-hour EMA; RSI indicator stands above the 50 midline. The first upside barrier is seen at 157.73; 155.65 acts as an initial support level for EUR/JPY.The EUR/JPY cross trades in positive territory for the second consecutive day during the early European session on Thursday. Investors await the Eurozone HCOB Composite PMI, Services PMI for December, and German Consumer Price Index (CPI) for fresh impetus. The monthly and annual German CPI are estimated to show an increase of 0.1% and 3.8%, respectively. EUR/JPY currently trades around 157.10, gaining 0.42% on the day.
From the technical perspective, EUR/JPY resumes its uptrend as the cross just climbs above the key 100-hour Exponential Moving Averages (EMA) on the four-hour chart. Additionally, the 14-day Relative Strength Index (RSI) stands above 50 midline, indicating further upside looks favorable.
A decisive break above the 156.90–157.00 region will pave the way to a high of December 20 at 157.73. The additional upside filter to watch is a high of December 27 at 158.38, en route to a high of December 12 at 159.12.
On the flip side, a low of December 29 at 155.65 acts as an initial support level for EUR/JPY. Further south, the next downside target is seen at the lower limit of the Bollinger Band at 155.04. A breach of this level will see a drop to a low of December 15 at 154.40, and finally a low of December 14 at 153.85.