EUR/JPY Price Forecast: The bullish outlook remains in play above 165.50

• EUR/JPY drifts lower to around 165.75 in Wednesday's early European session. 
• The constructive outlook of the cross remains intact, with the bullish RSI indicator. 
• The immediate resistance level emerges at the 166.00-166.10 region; the first support level is seen at 165.16.

The EUR/JPY cross weakens to near 165.75 during the early European trading session on Wednesday. The anticipation that the European Central Bank (ECB) would cut its Deposit Facility Rate again this year exerts some selling pressure on the Euro (EUR). 

According to the 4-hour chart, the positive outlook of EUR/JPY prevails as the cross holds above the key 100-period Exponential Moving Average (EMA). Additionally, the upward momentum is supported by the Relative Strength Index (RSI), which stands above the midline near 62.20, supporting the buyers in the near term. 

The first upside barrier for the cross emerges at the 166.00-166.10 zone, representing the high of October 29 and the psychological level. A decisive break above this level could see a rally to 166.55, the upper boundary of the Bollinger Band. The next resistance level is located at 167.95, the high of July 30. 

On the downside, the initial support level for EUR/JPY is seen at 165.16, the low of October 29. Any follow-through selling below the mentioned level could see a drop to 164.32, the low of October 26. The additional downside filter to watch is 164.06, the lower limit of the Bollinger Band. 

EUR/JPY 4-hour chart