EUR/JPY Price Outlook: Maintains Uptrend Within Ascending Channel Above 160.00

EUR/JPY Gains for Fourth Day as BoJ Signals Steady Rates, ECB Decision in Focus

The EUR/JPY pair is trading in positive territory for the fourth consecutive day, hovering around 160.35 during the early European session on Thursday. The Japanese yen (JPY) remains under pressure after Reuters reported that the Bank of Japan (BoJ) is likely to keep interest rates unchanged at its December meeting next week. According to a source, BoJ policymakers want more time to evaluate overseas risks and assess the wage outlook for the coming year.

Later today, the spotlight will shift to the European Central Bank (ECB) as markets await its interest rate decision, which could influence the pair’s trajectory.

Technical Outlook: EUR/JPY Eyes Key Resistance Levels

On the 4-hour chart, EUR/JPY continues its upward momentum, trading above the crucial 100-period Exponential Moving Average (EMA). The Relative Strength Index (RSI) supports the bullish sentiment, holding steady above the midline at 59.45.

Key resistance is found at 160.70, the December 11 high. A sustained break above this level could open the door to 161.10, marking the upper boundary of the ascending trend channel. Further gains may target 162.00, a significant resistance level, and the high from November 26.

On the downside, the psychological support level at 160.00 is critical. A drop below this threshold could push the pair toward 159.10, the lower limit of the trend channel. Continued selling pressure might drive the pair further to 158.65, the December 11 low.