EUR/JPY Price Analysis: Resumes its bullish bias near 164.50 amid the overbought condition

• EUR/JPY extends its recovery to 164.50 in Thursday’s early European session. 
• The cross resumes its bullish outlook with the overbought RSI condition.
• The first upside barrier will emerge at 164.70; initial support level is located at the 164.00 round mark.

The EUR/JPY cross trades on a stronger note for the third consecutive day around 164.50 during the early European session on Thursday. The absence of clarity from the Bank of Japan (BoJ) on future policy steps puts some selling pressure on the Japanese Yen (JPY). However, the possible intervention from the Japanese authorities to prevent the JPY depreciation might cap the upside of the EUR/JPY cross. 

 According to the four-hour chart, EUR/JPY resumes its upside stance as the cross holds above the 50- and 100-period Exponential Moving Averages (EMA). The Relative Strength Index (RSI) holds in bullish territory above 70. However, the overbought RSI condition indicates that further consolidation cannot be ruled out before positioning for any near-term EUR/JPY appreciation.

The first upside barrier for EUR/JPY will emerge near the upper boundary of the Bollinger Band at 164.70. Any follow-through buying above this level could pave the way to a high of March 20 at 165.35. The next hurdle is seen at the psychological level of 166.00. 

On the downside, the 164.00 round mark acts as an initial support level for the cross. The additional downside filter to watch is the 50-period EMA at 163.56, followed by the 100-period EMA at 163.30. A decisive break below the latter will see a drop to the lower limit of the Bollinger Band at 162.30. 

EUR/JPY four-hour chart