EUR/JPY Forecast: Bullish Bias Holds Above 165.50 With Resistance at 165.65

EUR/JPY Forecast: Holds Bullish Momentum Above 165.50 Support

Cross Holds Firm on Bullish Technical Signals

The EUR/JPY pair trades marginally higher around 165.50 during early European hours on Wednesday, maintaining a bullish bias. The Euro (EUR) gains modestly against the Japanese Yen (JPY) as global sentiment improves amid easing US-China trade tensions, diminishing demand for the Yen’s safe-haven appeal.

Technical Outlook: RSI and EMA Support Upside Bias

On the daily chart, the pair remains above the 100-day Exponential Moving Average (EMA), confirming bullish structure. Additionally, the 14-day Relative Strength Index (RSI) prints around 63.50, staying well above the neutral 50 mark — a sign of continued upward momentum.

Key Technical Levels

Immediate resistance: 165.65 (Top of Bollinger Band)
Next resistance: 166.10 (November 6, 2024 high)
Further resistance: 166.60 (October 30, 2024 high)
First support: 164.55
Next support: 164.10

A daily close above 165.65 could clear the path for a test of 166.10 and eventually 166.60, while a drop below 164.55 would weaken the bullish tone.

Market Sentiment Favors Risk-On Assets

Positive developments in the US-China trade dialogue have lifted overall market sentiment. This environment reduces safe-haven demand for the Yen and gives risk-sensitive pairs like EUR/JPY room to appreciate. Traders now await further confirmation from the upcoming US CPI data, which may influence cross-market volatility.