■ EUR/JPY remains capped below 163.00 ahead of the Eurozone PMI data.
■ The cross maintains a positive outlook above the 100-hour EMA; RSI indicator is located in the bullish territory above 50.
■ The key resistance level is located at the 163.00–163.10 zone; 162.10 acts as an initial support level for EUR/JPY.
The EUR/JPY cross loses momentum after facing a rejection from 163.00 during the early European session on Thursday. As of writing, the cross is trading near 162.60, down 0.20% on the day. Investors await the preliminary Eurozone PMI data for fresh impetus. The downbeat reading could fuel the fear of a recession in the Eurozone and exert some selling pressure on the Euro (EUR) against the Japanese Yen (JPY).
Technically, EUR/JPY maintains a positive outlook on the four-hour chart as the cross holds above the key 100-hour Exponential Moving Averages (EMAs). Furthermore, the Relative Strength Index (RSI) is located in the bullish territory above 50, indicating that further upside looks favorable.
That being said, the key resistance level is located in the 163.00–163.10 area. The mentioned level is the confluence of the upper boundary of the Bollinger Band and a psychological round figure. The next upside barrier is seen at a high of November 19 at 163.55. A break above the latter will see the rally to the year-to-date (YTD) high of 164.30.
On the other hand, a low of November 22 at 162.10 acts as an initial support level for EUR/JPY. The additional downside filter to watch is the 100-hour EMA at 161.74. A breach of the latter will see a drop to the lower limit of the Bollinger Band at 161.33, followed by a low of November 7 at 160.43, and finally the round figure at 160.00.
