In early European trading on Monday, the EUR/JPY pair is trading around 169.50, attracting buyers. The weakened Japanese Yen is a result of lower-than-expected Japan GDP growth numbers for Q1, challenging the Bank of Japan’s efforts to raise interest rates from near zero.
The EUR/JPY remains bullish as it stays above the 100-period Exponential Moving Averages on the four-hour chart. The Relative Strength Index (RSI) is in bullish territory at around 64.50, indicating a positive outlook for the cross.
The first upside target for EUR/JPY is at 169.82, with further resistance at the psychological level of 170.00 and an all-time high of 171.60. On the downside, initial support is at 168.78, followed by the lower Bollinger Band limit at 167.79 and the 100-period EMA at 167.50.
A breach of support levels could lead to a drop to 165.66. The four-hour chart shows a bullish trend for EUR/JPY, with potential for further upside movement.