EUR/JPY continues its upward trend, reaching a high of 166.85 on Thursday, the highest level seen since 2008. The cross remains bullish, supported by the overbought RSI condition. In terms of resistance and support levels, the first resistance is expected at 166.82, while the initial support is at 165.35.
The positive momentum of EUR/JPY has been consistent for the past five days during early European trading hours. The upcoming Tokyo April Consumer Price Index (CPI) and Bank of Japan (BoJ) interest rate decision are key events to watch. The divergence in interest rates between Japan and the Eurozone continues to weigh on the Japanese Yen (JPY) against the Euro (EUR).
From a technical standpoint, EUR/JPY remains bullish on the four-hour chart, trading above the 50-period and 100-period Exponential Moving Averages (EMA) with an upward slope. The RSI is in bullish territory above 70, although the overbought condition suggests a possibility of consolidation before any further appreciation.
The next upside barrier for EUR/JPY is near the upper boundary of the Bollinger Band at 166.82, followed by the psychological level of 167.00. A breakout above this level could lead to a rally towards the yearly high of 168.95 and potentially the all-time high of 169.78 from July 2008. On the downside, initial support is near the high of March 20 at 165.35, with further support levels at the 50-period EMA at 165.11 and the 100-period EMA at 164.62.
Overall, EUR/JPY remains in a bullish stance with potential for further upside movement, supported by technical indicators and market expectations regarding central bank policies.