EUR/JPY Price Analysis: The first upside barrier is seen at 161.60

• EUR/JPY gains ground near 161.48 ahead of the Bank of Japan's (BoJ) key event.
• The bullish outlook of the cross remains intact above the key EMA; RSI indicator stands in bullish territory.
• 161.60 acts as an immediate upside barrier for the cross; the critical support level to watch is at 160.65.

The EUR/JPY cross holds positive ground around the mid-161.00s during the early European trading hours on Monday. Investors await the Bank of Japan's (BoJ) monetary policy decision on Tuesday. This event is likely to trigger volatility in the market. The BoJ is anticipated to keep its ultra-loose monetary policy unchanged at its January meeting, focusing on any signals Governor Kazuo Ueda gives about when the central bank will raise short-term interest rates out of negative territory. The cross currently trades around 161.48, up 0.04% on the day. 

From the technical perspective, EUR/JPY keeps the bullish vibe unchanged as the cross holds above the 50- and 100-hour Exponential Moving Averages (EMA) on the four-hour chart with an upward slope. The upward momentum is supported by the 14-day Relative Strength Index (RSI) which stands above the 50 midline, indicating the path of least resistance level is to the upside. 

The upper boundary of the Bollinger Band at 161.60 acts as an immediate upside barrier for the cross. A break above the latter will pave the way to a high of January 19 of 161.86. Further north, the next hurdle is seen at the 162.00 psychological round mark. 

On the other hand, the critical support level to watch is the confluence of the lower limit of the Bollinger Band and a low of January 18 at 160.65. A breach of this level will see a drop to the 50-hour EMA at 160.15, en route to the 100-hour EMA at 159.25.

EUR/JPY four-hour chart