EUR/JPY: Bearish Tone Persists Below Mid-161.00s

EUR/JPY is trading slightly lower, around 161.30, amid growing speculation of a rate hike from the Bank of Japan in March. The cross maintains a bearish tone below key moving averages, with the RSI indicator indicating a downward momentum.

According to the four-hour chart, EUR/JPY continues to show a bearish sentiment as it remains below the 50- and 100-period Exponential Moving Averages (EMA). Additionally, the Relative Strength Index (RSI) is below the 50-midline, indicating support for sellers.

The main resistance for EUR/JPY is at 161.65, where the upper boundary of the Bollinger Band and the 50-period EMA converge. Beyond that, further resistance is at the 100-period EMA at 161.85. If buying pressure persists, the pair could rally to the March 8 high at 162.17, followed by the March 6 high at 162.95.

On the downside, initial support is at the March 12 low of 160.87, with further support at the lower Bollinger Band limit of 160.25. Additionally, the psychological level of 160.00 could act as a significant support level.

EUR/JPY four-hour chart

EUR/JPY