EUR/JPY Price Forecast: Bullish outlook remains in play above 166.50

• EUR/JPY trades with mild gains around 166.80 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 immediate resistance level emerges at 167.75; the first support level to watch is 166.02.

The EUR/JPY cross posts modest gains near 166.80 during the early European session on Wednesday. Reduced bets for a Bank of Japan (BoJ) rate hike undermine the Japanese Yen (JPY) and act as a tailwind for the cross. 

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 Relative Strength Index (RSI), which stands above the midline near 66.00, displaying bullish momentum in the near term. 

On the bright side, the first upside barrier for the cross emerges at 167.75, the upper boundary of the Bollinger Band. A decisive break above this level could pick up more momentum and aim for 168.02, the high of July 26. Further north, the next resistance level is seen at the 170.00 psychological level. 

In the bearish case, the low of June 16 at 166.02 acts as an initial support level for EUR/JPY. A breach of this level could drag the cross toward 164.22, the low of June 6. The additional downside filter to watch is 162.89, the low of June 5. 

EUR/JPY daily chart