EUR/JPY Price Analysis: Remains under selling pressure below 162.50, oversold RSI condition eyed

• EUR/JPY extends its downside near 162.25 in Thursday’s early European session. 
• The cross is below the key 100-period EMA with an oversold RSI condition.
• The key support level is seen at the 162.00 psychological mark; the first upside barrier emerges at 164.85. 

The EUR/JPY cross trades in negative territory for the fourth consecutive day around 162.25 on Thursday during the early European session. The Japanese Yen (JPY) gains momentum against the Euro (EUR), bolstered by a surprise hawkish policy announcement of the Bank of Japan (BoJ) on Wednesday.

The BoJ decided to raise its short-term policy rate to 0.25% from 0-0.1%, the largest since 2008. Additionally, the Japanese central bank stated that it will taper the Japanese government bonds to about 3 trillion yen ($19.64 billion) per month in the January to March 2026 quarter.

EUR/JPY keeps the bearish vibe unchanged on the 4-hour chart as it holds below the key 100-period Exponential Moving Average (EMA). The Relative Strength Index (RSI) holds in bearish territory below the midline. However,  the oversold RSI condition indicates that further consolidation cannot be ruled out before positioning for any near-term EUR/JPY depreciation.

The crucial support level for the cross will emerge at the 162.00 psychological mark. Extended losses will see a drop to the 161.00-161.10 region, portraying the lower limit of the Bollinger Band and round figure. The additional downside filter to watch is 160.22, a low of March 11. 

On the upside, the immediate resistance level for the cross is seen near 164.85, a low of July 25. Further north, the next hurdle is located at 167.88, a high of July 30. Any follow-through buying above this level could expose the 100-period EMA at 168.55, followed by the upper boundary of the Bollinger Band around 169.12.  

EUR/JPY 4-hour chart