Eurjpy Finally Ends Its Losing Streak

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Eurjpy Finally Ends Its Losing Streak

EUR/JPY Finally Ends Its 4-Day Losing Streak

A sudden change can be noticed in the EUR/JPY price action as the pair has already ended its 4-day losing streak. After touching the 161.24 level (weekly low), the cross has now moved higher beyond the 162.00 resistance, which is now serving as support.

For now, the EUR/JPY can be seen near 162.35, with a gain of +0.26% for the day. Next up is the resistance zone at 162.50, followed by 162.70 and then 163.00 level.

100 SMA Remains The Key For EUR/JPY

According to the EUR/JPY H4 chart, the outlook remains highly bullish as long as the cross can trade above the 100 SMA. In addition, another indicator that points to a bullish outlook is the RSI on the H4, as it is printing above the 50 level.

Although there are numerous resistance levels up ahead, the most important one is 163.00 since it is also a round figure. After that, we have the resistance zone of 163.50 to 163.55, where a lot of sell orders are present. Once this hurdle is broken by the EUR/JPY bulls, it will then head towards the 164.30 which is also the YTD for the cross.

And if we look at the downside, it looks like the 100 SMA remains important and will also serve as a support for the bulls. After that, the next important level is the 161.13, which is also the Bollinger Band's lower limit. Next up is the 160.43, followed by the 160.00 level, which is also a major support zone.

However, there is one thing that can threaten the bullish outlook of EUR/JPY & that has to do with the BoJ's policy tweak. For now, there are only rumors, but that could soon change once we hear from the BoJ officials. The rumors are about an end to the negative interest rates in Japan that will provide a much-needed boost to the Japanese Yen.

In that case, the EUR/JPY will reverse course and start to cross all of the support levels mentioned above. However, all of this is still a rumor unless confirmed otherwise by the BoJ.

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