Market participants witnessed significant EUR/JPY buying activity during Thursday's European session,ethereum price prediction 2024 with the cross reaching weekly highs near 163.50. This movement primarily reflects reaction to the Bank of Japan's maintained accommodative stance, creating selling pressure on the Japanese yen across multiple currency pairs.
The technical landscape continues to exhibit constructive characteristics for EUR/JPY bulls. The pair maintains position above critical moving averages, with momentum indicators supporting the case for potential extension of recent gains. Traders are monitoring whether price action can sustain above the 163.00 psychological level, which now serves as immediate support.
From a broader perspective, EUR/JPY has established a well-defined trading range since mid-April. This consolidation follows the impressive recovery from February's yearly lows, with the successful breach of the 200-day moving average in March establishing a more positive medium-term technical backdrop. Current price behavior suggests this may represent a pause within a broader uptrend rather than a reversal pattern.
Key resistance zones come into focus near the 164.00 handle, with a decisive break above 164.20 potentially triggering additional buying interest. Such development could open the path toward testing higher technical objectives, though traders should remain aware of potential resistance near previous swing highs.
Should the pair fail to maintain current levels, initial downside support appears near 163.00, followed by more significant levels around 162.00 and the 200-day moving average near 161.75. A sustained move below the 161.35 area would alter the short-term technical picture, potentially signaling deeper corrective movement.
Market participants continue evaluating fundamental drivers including relative central bank policy expectations and risk sentiment dynamics. The technical setup suggests traders should monitor these key levels carefully when considering position management strategies in the sessions ahead.