EUR/JPY Price Analysis: Crucial containment level will emerge at 159.90

• EUR/JPY is trading lower near 160.45 in the European session on Monday.
• The RSI indicator is in bearish territory below the 50 midline, providing support to sellers in the short term.
• The immediate resistance level is located at 160.92; the key support level will emerge at 159.90.

EUR/JPY loses traction below 106.50 during early European trading hours on Monday. The preliminary German Gross Domestic Product for the fourth quarter will be published on Tuesday. It is estimated that the quarterly and annually will contract by 0.3% and 0.2%, respectively. At the time of writing, the cross is trading above 160.45, losing 0.17% on the day.
Technically, the bullish outlook for EUR/JPY appears vulnerable as the cross is moving below the 100-period EMA on the four-hour chart. Furthermore, the Relative Strength Index (RSI) is in bearish territory below the midline of 50, suggesting that further decline looks favorable in the short term.
The January 26 high at 160.92 acts as immediate resistance level for EUR/JPY. The next bullish barrier is at the upper limit of the Bollinger Bands at 161.10. A bullish break above this last level will lead to a recovery to the January 23 high at 161.70, followed by the January 19 high at 161.87.
On the other hand, a decisive break below the 50 EMA at 160.45 will pave the way towards the key support level at 159.90, which represents the lower boundary of the Bollinger Band and the 100 EMA. Further south, the next bearish target to watch is the January 16 low at 159.24, followed by the January 12 low at 158.54.

EUR/JPY four-hour chart