During early European trading on Thursday, the EUR/JPY pair faced selling pressure near 166.35. The Japanese Yen strengthened against the Euro amid rising tensions in the Middle East, which weighed on market sentiment. Investors are now preparing for Japan’s May National Consumer Price Index (CPI) report and the Bank of Japan’s Monetary Policy Meeting Minutes, both scheduled for release on Friday.
From a technical perspective, EUR/JPY maintains a bullish outlook on the daily chart. The price remains above the important 100-day Exponential Moving Average (EMA), signaling continued upward momentum. The 14-day Relative Strength Index (RSI) also supports this view, standing near 62.00, above its midpoint, which indicates strong buying pressure.
Traders should watch for a move toward the first resistance level at 167.62, the high from June 17. If the pair extends its gains, it could reach the upper Bollinger Band around 167.85. Beyond this, the next major resistance is the psychological level at 170.00. On the downside, initial support lies between 166.00 and 166.05, marking the low from June 16 and a key round number. If this support breaks, the pair may slide toward 164.22, the low from June 6. The critical level to watch remains the 100-day EMA at 162.88.
