EUR/JPY Price Forecast: Keeps bullish vibe above 162.00, further consolidation cannot be ruled out

• EUR/JPY weakens to around 162.35 in Friday's early European session. 
• Positive view of the cross prevails above the 100-day EMA , but further consolidation cannot be ruled out.
• The immediate resistance level emerges at 163.31; the initial support level to watch is 161.88.

The EUR/JPY cross edges lower to near 162.35 during the early European session on Friday. The Japanese Yen (JPY) strengthens against the Euro (EUR) due to rising expectations that the Bank of Japan (BoJ) will continue raising interest rates this year. The bets were supported by hotter-than-expected Consumer Price Index (CPI) inflation reports from Japan released earlier this Friday. 

Technically, in the longer term, the bullish trend of EUR/JPY remains in play as the cross is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. Nonetheless, further consolidation or temporary sell-off cannot be ruled out, with the 14-day Relative Strength Index (RSI) standing below the midline near 46.95.

In the bullish case, the immediate resistance level is located at 163.31, the high of May 21. Sustained trading above this level could attract some buyers to 164.80, the upper boundary of the Bollinger Band. Further north, the next hurdle to watch is 166.00, the psychological level and the high of November 7, 2024. 

The first downside target for the cross emerges at 161.88, the 100-day EMA. Extended losses could see a drop to 161.33, the lower limit of the Bollinger Band. A breach of this level could pave the way to the key contention level at the 160.00 psychological mark. 

EUR/JPY daily chart

 

EUR/JPY daily chart