EUR/JPY Price Forecast: Key resistance level emerges above 162.00

• EUR/JPY climbs to near 161.10 in Friday’s early European session, up 0.45% on the day. 
• The positive view of the cross remains in place above the key 100-period EMA with the bullish RSI indicator. 
• The immediate resistance level emerges near 162.35; the key support level to watch is at the 160.05160.00 region. 

The EUR/JPY cross gains traction to around 161.10 during the early European trading hours on Friday. The Japanese Yen (JPY) softens against the Euro (EUR) on a positive tone around the equity markets and improved risk sentiment. Furthermore, a source familiar with the Bank of Japan's (BoJ) thinking noted that rising global uncertainty could affect the rate-hike timing. This, in turn, contributes to the JPY’s downside and creates a tailwind for EUR/JPY.

Technically, the bullish outlook of EUR/JPY remains in play, with the cross holding above the key 100-period Exponential Moving Average (EMA) on the daily chart. Further upside cannot be ruled out as the 14-day Relative Strength Index (RSI) stands above the midline around 56.0.  

In the bullish case, the key resistance level for the cross is located near 162.35, representing the upper boundary of the Bollinger Band and the high of March 12. Sustained trading above this level could attract some buyers to 162.70, the high of January 28. Further north, the next hurdle is seen at 163.22, the high of January 22. 

On the downside, the low of March 13 and the psychological level in the 160.05160.00 zone act as a crucial support level for the cross. Extended losses could see a drop to the lower limit of the Bollinger Band at 159.75. A decisive break below the mentioned level could pave the way to 159.35, the 100-period EMA.  

EUR/JPY 4-hour chart