EUR/JPY Price Forecast: Remains capped below the 100-day EMA near 159.50

• EUR/JPY weakens to near 159.40 in Friday's early European session. 
• The negative view of the cross remains intact, but further consolidation cannot be ruled out. 
• The first downside target to watch is 159.12; the immediate resistance level emerges at 160.70.

The EUR/JPY cross loses traction to around 159.40 during the early European session on Friday. The uncertainty and risk-off sentiment in the markets boost the safe-haven flows, benefiting the Japanese Yen (JPY). Investors await the release of the Eurozone Gross Domestic Product (GDP) for the fourth quarter, which is due later on Friday. 

Technically, EUR/JPY keeps the bearish vibe on the daily chart as the index remains capped below the key 100-day Exponential Moving Average (EMA). Nonetheless, further consolidation cannot be ruled out as the 14-day Relative Strength Index (RSI) hovers around the 50-midline near 54.0, suggesting neutral momentum in the near term. 

The initial support level for the cross emerges at 159.12, the low of March 6. Any follow-through selling below this level could expose 156.18, the low of December 3, 2024. The crucial contention level to watch is the 154.85-154.80 zone, representing the lower limit of the Bollinger Band and the low of February 28. 

On the bright side, the first upside barrier is located at 160.70, the 100-day EMA. Extended gains could pave the way to the 161.00-161.10 region, representing the psychological level and the upper boundary of the Bollinger Band. The next hurdle is seen at 162.80, the high of January 14.  

EUR/JPY daily chart