The key barrier is seen at the year-to-date highs of 161.80

• EUR/JPY is prolonging the consolidative note below the mid-161.00s on Friday.
• The cross holds above the 50- and 100-hour EMAs; RSI indicator is located in the bullish territory above 50.
• The critical resistance level will emerge at 161.80; 160.85 acts as an initial support level.

The EUR/JPY cross trades flat around 161.45 during the early European session on Friday. In the absence of top-tier economic data released from both Japan and the Eurozone, investors await the sidelined ahead of the European Central Bank (ECB) President Christine Lagarde’s speech later on Friday.

From a technical perspective, EUR/JPY holds above the 50- and 100-hour Exponential Moving Averages (EMAs) on the four-hour chart, which supports the buyers for the time being. It’s worth noting that the Relative Strength Index (RSI) is located in the bullish territory above 50, indicating that further upside looks favorable.

The key resistance level for the cross is located near the year-to-date (YTD) highs and the upper boundary of the Bollinger Band at 161.80. A break above the latter will see the next barrier near the psychological round figure at 162.00. Further north, the additional upside filter to watch is 161.76 (high of August 25, 2008)

On the downside, a high of October 31 at 160.85 acts as an initial support level. The next downside stop is seen near the lower limit of the Bollinger Band at 160.51. The key contention level will emerge at 159.80 (50-hour EMA). Any follow-through selling below the latter will see a drop to 159.07 (low of November 2).

EUR/JPY four-hour chart