EUR/JPY Price Forecast: Resumes its uptrend above 164.00

• EUR/JPY attracts some buyers to around 164.30 in Wednesday’s early European session, adding 0.43% on the day. 
• The cross resumes the upside above the 100-period EMA with the bullish RSI indicator. 
• The first upside barrier is seen at 164.55; the initial support level is located at 164.17.

The EUR/JPY cross resumes the upside to near 164.30 during the early European session on Wednesday. The lack of clear guidance on the next rate hike timing by the Bank of Japan (BoJ) weighs on the Japanese Yen (JPY) and acts as a tailwind for the cross. However, the escalating tensions of the Russia-Ukraine war could boost the safe-haven flows, benefiting the JPY. 

According to the 4-hour chart, EUR/JPY resumes the bullish trends as the cross climbs above the key 100-period Exponential Moving Average (EMA). Furthermore, the 14-day Relative Strength Index (RSI) is located above the midline near 57.30, indicating that further upside looks favorable in the near term. 

The upper boundary of the descending trend channel of 164.55 acts as an immediate resistance level for the cross. A sustained move above this level could see a rally to the 165.00-165.05 zone, representing the psychological level and the high of November 15. The next hurdle to watch is 166.10, the high of November 6. 

On the flip side, the initial support level for EUR/JPY emerges near the 100-period EMA at 164.17. A breach of the mentioned level could pave the way to 163.21, the low of November 8. The additional downside filter to watch is 162.35, the low of November 16. Extended losses could expose 162.15, the lower limit of the trend channel.  

EUR/JPY 4-hour chart