Gains traction near 157.50, the key contention is seen at 157.00

• EUR/JPY currently trades around 157.48, up 0.18% on the day.
• The key resistance level is located at 157.55; 157.00 will emerge as a key support level.
• The cross holds below the 50- and 100-hour EMAs; RSI indicator shows the non-directional movement.

The EUR/JPY cross gains momentum around 157.48 during the early European session on Monday. The cross bounces off Friday’s low of 157.05 amid the improvement in risk sentiment. However, the safe-haven flow could cap the upside of the cross. That said, the rising geopolitical tensions between Israel and Palestine might boost the traditional safe-haven Japanese Yen and act as a headwind for the EUR/JPY cross.

From a technical perspective, EUR/JPY holds below the 50- and 100-hour Exponential Moving Averages (EMAs) on the one-hour chart, which supports the sellers for the time being. It’s worth noting that the Relative Strength Index (RSI) is located in the 40-60 zone, indicating a non-directional movement in the pair.

The key resistance level for the cross is located at 157.55, representing the confluence of the upper boundary of the Bollinger Band and the 50-hour EMA. A break above the latter will see the next barrier near a psychological round mark and a high of October 13 at 158.00. Further north, the additional upside filter is seen around a high of October 2 of 158.45, followed by a high of September 13 of 158.60.

On the downside, the lower limit of the Bollinger Band, a low of October 13, and a round figure at 157.00 will emerge as a key support level. The next contention level will emerge at 156.51 (a low of October 9). Any follow-through selling below the latter will see a drop to 156.22 (a low of October 5), and finally at 156.10 (a low of October 5).

EUR/JPY one-hour chart