EUR/JPY Price Analysis: The crucial contention level will emerge at 159.90

• EUR/JPY trades weaker near 160.45 in Monday’s European session. 
• The RSI indicator stands in bearish territory below the 50-midline, supporting the sellers in the near term. 
• The immediate resistance level is located at 160.92; the key support level will emerge at 159.90. 

The EUR/JPY cross loses traction below the mid-160s during the early European trading hours on Monday. The preliminary German Gross Domestic Product for the fourth quarter will be released on Tuesday. The quarterly and annual are estimated to shrink by 0.3% and 0.2%, respectively. At press time, the cross is trading at 160.45, losing 0.17% on the day. 

From the technical perspective, the bullish outlook of EUR/JPY looks vulnerable as the cross is set to move below the 100-period Exponential Moving Averages (EMA) on the four-hour chart. Additionally, the Relative Strength Index (RSI) stands in bearish territory below the 50-midline, suggesting that further decline looks favorable in the near term.

A high of January 26 at 160.92 acts as an immediate resistance level for EUR/JPY. The next upside barrier is seen at the upper boundary of the Bollinger Band at 161.10. A bullish breakout above the latter will see a rally to a high of January 23 at 161.70, followed by a high of January 19 at 161.87.

On the other hand, a decisive break below the 50-period EMA at 160.45 will pave the way to the key support level at 159.90, representing the lower limit of the Bollinger Band and the 100-period EMA. Further south, the next downside target to watch is a low of January 16 at 159.24, followed by a low of January 12 at 158.54.

EUR/JPY four-hour chart