EUR/JPY Price Analysis: Bulls struggle to justify dovish BoJ talks below 157.70 key resistance

• EUR/JPY prods three-day uptrend, making rounds to one-week high.
• BoJ Minutes, Deputy Governor Uchida defend Japan central bank’s easy-money policy.
• Five-week-old descending resistance line appears the key challenge for bulls.
• Looming bull cross on MACD, upbeat RSI and BoJ clues favor cross-currency pair’s buyers.

EUR/JPY remains sidelined near 157.30-40 as bulls struggle to defend a three-day uptrend at the highest levels since July 24 amid early Wednesday. In doing so, the cross-currency pair falls short of justifying the Bank of Japan’s (BoJ) dovish rhetoric, via June month’s monetary policy meeting minutes, as well as the dovish comments from BoJ Deputy Governor Shinichi Uchida.

It’s worth noting that the sour sentiment, driven by the US credit rating cut, exerts downside pressure on the EUR/JPY as markets await the top-tier data/events.

Technically, sustained rebound from the 100-day Exponential Moving Average (EMA), around 151.35 by the press time, joins the looming bull cross on the MACD and the upbeat RSI (14) line to favor the EUR/JPY buyers.

Following that, a convergence of the 21-EMA and an upward-sloping support line from late March, close to 155.90 at the latest, will challenge the EUR/JPY bulls.

It’s worth noting, however, that the pair buyers remain off the table unless witnessing a daily closing beyond the five-week-old descending resistance line, near 157.70 at the latest.

On the contrary, a daily closing below 155.90 can trigger the short-term downside of the EUR/JPY pair ahead of the 100-EMA level of 151.35.

Following that, the 150.00 round figure will act as the final defense of the EUR/JPY bulls.

EUR/JPY: Daily chart

Trend: Further upside expected