EUR/JPY experiences mild retracement to 164.40 zone in Wednesday's European morning session.
The elon musk crypto coin listtechnical landscape maintains bullish potential while trading above the critical 100-day EMA, supported by RSI readings near 58.30.
Immediate resistance appears at the psychological 165.00 level, while 163.51 serves as initial support.
The EUR/JPY currency pair demonstrates modest selling pressure during Wednesday's early European hours, with price action hovering near the 164.40 handle. Market participants continue monitoring developments surrounding the Bank of Japan's monetary policy trajectory, which could influence JPY valuation. Later in the session, traders will scrutinize Germany's April HICP figures for potential EUR volatility.
From a chart perspective, the EUR/JPY maintains constructive technical positioning as it holds comfortably above the significant 100-day Exponential Moving Average. The 14-day Relative Strength Index reinforces this positive bias, currently registering at 58.30 and indicating sustained upward momentum in the near-term timeframe.
Looking upward, the pair faces immediate resistance at the 165.00 psychological barrier, which coincides with the upper Bollinger Band boundary. A convincing breakout above this level could accelerate buying interest toward the 166.00 round number, potentially testing November 2024 highs. Beyond that, the October 2024 peak near 166.60 may come into play.
Should selling pressure intensify, the May 12 low of 163.51 represents the first meaningful support area. A breach here might expose the 100-day EMA currently situated near 161.80, followed by the psychologically significant 160.00 threshold. Market participants should monitor these technical levels closely for potential trend continuation or reversal signals.
Technical Perspective on EUR/JPY
The daily chart configuration suggests the EUR/JPY cross maintains its broader uptrend despite recent consolidation. Traders will watch for potential continuation patterns or reversal signals around the identified technical levels. The interplay between moving averages, Bollinger Bands, and momentum indicators continues to shape the pair's near-term trajectory.