EUR/JPY Stalls Below Key Resistance - What's Next for the Cross? | Technical Outlook & PMI Impact Analysis
■ The EUR/JPY cross shows consolidation patterns below the psychological 163.00 level ahead of crucial economic data releases.
■ Technical indicators maintain constructive bias with price action holding above key moving averages and RSI in bullish territory.
■ Market participants eye 163.10 as critical resistance, while 162.10 emerges as immediate support in current trading range.
The EUR/JPY currency pair demonstrates sideways movement in Thursday's European session, unable to sustain momentum beyond the 163.00 handle. Currently hovering around 162.60, market participants remain cautious pending the release of Eurozone Purchasing Managers' Index figures. These economic indicators could significantly influence near-term direction, particularly if data reveals weakening business activity across the monetary union.
From a technical perspective, the four-hour chart reveals several constructive elements. Price maintains position above the 100-period exponential moving average, while the Relative Strength Index holds comfortably above the 50 midpoint - both traditionally interpreted as bullish signals. The Bollinger Band configuration shows price testing the upper boundary, suggesting potential for either continuation or mean reversion depending on upcoming catalysts.
The 163.00-163.10 zone represents a critical technical juncture, combining psychological resistance with the upper Bollinger Band. A convincing breakout above this barrier could open path toward November highs near 163.55, with year-to-date peaks around 164.30 coming into focus for longer-term bulls. Conversely, failure to overcome resistance may see the cross retest support at 162.10, followed by the 100-EMA at 161.74. Additional downside targets include the lower Bollinger Band at 161.33 and the November 7 low of 160.43.
EUR/JPY technical levels to watch