EUR/JPY Price Forecast: Bullish outlook remains in play near 164.50

• EUR/JPY loses traction to around 164.40 in Wednesday's early European session.
• The positive view of the cross prevails above the key 100-day EMA with the bullish RSI indicator. 
• The first upside barrier emerges at 165.00; the first support level to watch is 163.51.

The EUR/JPY cross attracts some sellers to around 164.40 during the early European session on Wednesday. The Japanese Yen (JPY) strengthens against the Euro (EUR) amid the prospects for further policy normalization by the Bank of Japan (BoJ). The German Harmonized Index of Consumer Prices (HICP) data for April will be in the spotlight later on Wednesday. 

Technically, the constructive outlook of EUR/JPY remains in place as the cross is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. The upward momentum is reinforced by the 14-day Relative Strength Index (RSI), which stands above the midline near 58.30, displaying bullish momentum in the near term. 

On the bright side, the key resistance level for the cross emerges at 165.00, representing the upper boundary of the Bollinger Band and the psychological level. A decisive break above this level could pick up more momentum and aim for 166.00, the round mark and the high of November 7, 2024. Further north, the next hurdle is seen at 166.60, the high of October 30, 2024. 

In the bearish case, the low of May 12 at 163.51 acts as an initial support level for EUR/JPY. A breach of this level could drag the cross toward 161.80, the 100-day EMA. The additional downside filter to watch is the 160.00 psychological mark. 

EUR/JPY daily chart