EUR/JPY remains capped below the 164.00 mark, further upside looks favorable

• EUR/JPY snaps its four-day winning streak below 164.00 on Thursday.
• The pair holds above the 50- and 100-hour EMA; the RSI indicator stands in bullish territory above 50.
• The immediate resistance level is seen at 164.22; 163.07 acts as an initial support level for the cross.

The EUR/JPY cross trades with modest intraday losses during the Asian session on Thursday. However, the divergence in the monetary policy between the European Central Bank (ECB) and the Bank of Japan (BoJ) still exerts some pressure on the Japanese Yen (JPY) and lends support to the EUR/JPY cross. EUR/JPY currently trades around 163.93, down 0.15% for the day.

From a technical perspective, EUR/JPY holds above the 50- and 100-hour Exponential Moving Averages (EMAs) with an upward slope on the four-hour chart, which supports the buyers for the time being. It’s worth noting that the Relative Strength Index (RSI) is located in the bullish territory above 50, indicating that further upside looks favorable.

The immediate resistance level for the cross is seen at the year-to-date (YTD) high of 164.22. Further north, the cross will see the next barrier near the psychological round mark at 165.00, followed by 165.50.

On the flip side, a low of November 15 at 163.07 acts as an initial support level for EUR/JPY. The additional downside filter to watch is the 50-hour EMA at 162.15. The critical contention level is located at the lower limit of the Bollinger Band at 161.52. A breach of the latter will see a drop to the 100-hour EMA at 161.05.

EUR/JPY four-hour chart