EUR/JPY Price Forecast: Keeps bullish vibe, first upside target emerges above 163.00

• EUR/JPY extends the decline to near 162.35 in Thursday’s early European session, down 0.25% on the day. 

• The positive view of the pair prevails above the key 100-day EMA with the bullish RSI indicator. 

• The immediate resistance level emerges at 163.31; the key support level to watch is 162.00.

The EUR/JPY cross attracts some sellers to around 162.35 during the early European session on Thursday. The Japanese Yen (JPY) weakens against the Euro (EUR) amid the growing speculation that the Bank of Japan (BoJ) will hike interest rates again this year. 

Technically, the constructive outlook of EUR/JPY remains in place as the cross is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. However, further consolidation or temporary sell-off cannot be ruled out as the 14-day Relative Strength Index (RSI) stands below the midline near 47.25, displaying bearish momentum in the near term. 

The first upside target for EUR/JPY emerges at 163.31, the high of May 21. Extended gains could see a rally to 164.46, the high of May 1. The additional upside filter to watch is 164.85, the upper boundary of the Bollinger Band.

On the flip side, the crucial support level for the cross is located at 162.00, the 100-day EMA and the psychological level. Sustained trading below the mentioned level could see a drop to 161.40, the lower limit of the Bollinger Band. The next downside target to watch is 160.00, the round figure and the low of April 8.