EUR/JPY Price Forecast: The first upside barrier emerges near 164.00

• EUR/JPY trades on a softer note near 163.55 in Friday’s early Asian session. 
• The cross resumes its uptrend above the 100-period EMA with a bullish RSI indicator. 
• The immediate resistance level emerges at 164.00; the 163.10-163.00 region acts as an initial support level. 

The EUR/JPY cross trades weaker around 163.55, snapping the four-day winning streak on Friday during the early European session. The Japanese Yen (JPY) edges higher after recent Japan’s second-quarter Gross Domestic Product (GDP) came in stronger than estimated, growing by 0.8% QoQ in Q2. The encouraging GDP growth numbers lend support to the chance of a near-term interest rate hike by the Bank of Japan (BoJ).

The cross resumes its uptrend on the 4-hour chart, with the price holding above key 100-period Exponential Moving Averages (EMA). The Relative Strength Index (RSI) stands above the midline near 68.50, indicating that bearish vibes are present. 

The potential upside barrier for EUR/JPY emerges at the 164.00 psychological mark. A sustained break above this level keeps an eye out for a continuation of the climb back to the 164.89, a low of July 25. Extended gains will see a rally to 166.56, a high of July 31. 

On the flip side, the 163.10-163.00 zone acts as an initial support level for the cross. The additional downside filter to watch is 161.95, a low of August 15. The next contention level is seen at 160.59, a low of August 14.  

EUR/JPY 4-hour chart