EUR/JPY Price Forecast: The cross keeps bullish vibe above 163.00 ahead of BoJ rate decision

• EUR/JPY extends upside to around 163.05 in Thursday’s early European session. 
• The positive outlook of the cross prevails above the 100-period EMA with a bullish RSI indicator. 
• The immediate resistance level emerges at 163.55; the first downside target to watch is 162.32.

The EUR/JPY cross extends the rally to near 163.05 during the early European trading hours on Thursday. The uptick of the cross is bolstered by the risk-on mood in the financial markets. Investors will closely monitor the Bank of Japan (BoJ) interest rate decision on Friday for fresh catalysts. 

Traders have priced in a nearly 90% possibility that the Japanese central bank will raise interest rates from 0.25% to 0.50% at the end of the January 23-24 meeting, which would be the highest since the 2008 global financial crisis.