The EURJPY currency pair strengthens above the level of 156.00 as it reacts positively to the Japanese CPI data, indicating an increase in momentum.

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• EUR/JPY gains momentum above the 156.00 area following the Japanese CPI data.

The pair currently trades last at 156.062.

The previous day high was 156.62 while the previous day low was 155.87. The daily 38.2% Fib levels comes at 156.16, expected to provide resistance. Similarly, the daily 61.8% fib level is at 156.34, expected to provide resistance.

EUR/JPY gains traction above the key 156.00 area during the early Asian session on Friday. According to the four-hour chart, EUR/JPY holds above the 100- and 200-hour Exponential Moving Averages (EMA), which means further upside looks favorable.

The Japan Statistics Bureau revealed that June’s National Consumer Price Index (CPI) inflation rose from 3.2% to 3.3% YoY, versus 3.5% expected. Japanese policymakers are likely to maintain an ultra-easy monetary policy next week. This, in turn, led to the weakening of the Japanese Yen against its major rivals due to monetary policy divergences.

On the other side, concern about the economic slowdown in the Eurozone, which could push back a hawkish stance from the European Central Bank (ECB), might exert downside pressure on the Euro.

Therefore, the cross could meet the immediate resistance level of 156.90 (High of June 22). The 158.00 area appears to be a tough nut to crack for EUR/JPY. The mentioned level represents a psychological round mark and a year-to-date (YTD) high. Any meaningful follow-through buying will see a rally to the next round level hurdles at 159.00 and 160.00.

On the flip side, any extended weakness below 155.00 will challenge the initial support level of 154.60, representing the 200-hour EMA. The additional downside filter to watch is 154.25 (Low of June 20) en route to 153.40 (Low of June 12). Further south, the cross will see a drop to 152.70 (Low of June 15).

The Relative Strength Index (RSI) stands below 50, within the bearish territory, suggesting that sellers are likely to retain control in the near term.

Technical Levels: Supports and Resistances

EURJPY currently trading at 156.01 at the time of writing. Pair opened at 155.9 and is trading with a change of 0.07 % .

The pair is trading below its 20 Daily moving average @ 156.36, above its 50 Daily moving average @ 152.99 , above its 100 Daily moving average @ 149.17 and above its 200 Daily moving average @ 146.19

The previous day high was 156.62 while the previous day low was 155.87. The daily 38.2% Fib levels comes at 156.16, expected to provide resistance. Similarly, the daily 61.8% fib level is at 156.34, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 155.64, 155.38, 154.88
• Pivot resistance is noted at 156.39, 156.89, 157.15

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