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EUR/JPY Price Forecast: Further consolidation cannot be ruled out below 164.50

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  • EUR/JPY edges higher to near 164.40 in Thursday’s early European session. 
  • Further consolidation cannot be ruled out amid the neutral RSI indicator. 
  • The key resistance level emerges at the 164.95-165.00 region; the initial support level is located at 163.64.

The EUR/JPY cross gains traction to around 164.40 during the early European trading hours on Thursday. A lack of clear direction regarding the timing of a rate hike from the Bank of Japan (BoJ) weighs on the Japanese Yen (JPY) against the Euro (EUR). 

Traders brace for the flash Eurozone Gross Domestic Product (GDP) number for the third quarter (Q3), which is due later on Thursday, along with the speech from the European Central Bank (ECB) President Christine Lagarde.

Technically,  EUR/JPY hovers around the key 100-period Exponential Moving Averages (EMA) within the descending trend channel on the 4-hour chart. The cross could resume the upside if it can break above the 100-period EMA. However, further consolidation cannot be ruled out as the Relative Strength Index (RSI) stands near the midline, suggesting the neutral momentum of the cross.

The crucial resistance level for EUR/JPY emerges in the 164.95-165.00 zone, representing the upper boundary of the descending trend channel and the psychological level. Any follow-through buying could see a rally to 166.00, the high of November 7. 



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