EUR/JPY Surges by 2.12% Near 161.10 as Dovish Comments Weigh on Japanese Yen
The EUR/JPY cross is showing strength near 161.10, breaking a seven-day losing streak in the early European session on Wednesday. The Japanese Yen (JPY) is losing momentum after dovish comments from a Japanese official. Bank of Japan (BoJ) Deputy Governor Shinichi Uchida stated that the central bank will not raise rates in unstable market conditions.
The bearish outlook for EUR/JPY remains intact as it stays below the crucial 100-period Exponential Moving Averages (EMA). However, the Relative Strength Index (RSI) is holding above the midline, around 53.80, indicating potential upside in the near future.
In case of a bullish scenario, the first resistance level is at 162.18, followed by 162.90-163.00 where a psychological level and a high from August 1 coincide. Further gains could lead to a rally towards the 100-period EMA at 165.07.
On the downside, initial support is at 157.30, with additional support levels at 156.12 and 154.41.
In summary, EUR/JPY is experiencing a positive trend near 161.10, with potential for further gains despite a bearish outlook. Traders should monitor key resistance and support levels for potential trading opportunities.