EUR/JPY Price Forecast: Positive view prevails above 170.50, Eurozone Retail Sales data in focus

• EUR/JPY weakens to around 170.70 in Wednesday's early European session. 
• The positive view of the cross prevails above the key 100-day EMA, but further consolidation looks favorable. 
• The immediate resistance level emerges at 172.35; the first support level to watch is 170.15.

The EUR/JPY cross attracts some sellers near 170.70 during the early European session on Wednesday. The Japanese Yen (JPY) edges higher against the Euro (EUR) as the Bank of Japan (BoJ) revised its inflation forecast at the end of the July meeting and left the door open for further interest rate hikes by the end of this year. The release of the Eurozone Retail Sales data for June will be the highlight later on Wednesday. 

According to the daily chart, the constructive outlook of EUR/JPY remains in place as the cross is well-supported above the key 100-day Exponential Moving Average (EMA). Nonetheless, further consolidation cannot be ruled out as the 14-day Relative Strength Index (RSI) hovers around the midline. This displays a neutral momentum in the near term. 

On the bright side, the first upside barrier emerges at 172.35, the high of July 31. Sustained trading above this level could pick up more momentum and aim for 173.65, the upper boundary of the Bollinger Band. Further north, the next resistance level is seen in the 173.90-174.00 zone, representing the high of July 28 and the psychological level. 

In the bearish case, the lower limit of the Bollinger Band of 170.15 acts as an initial support level for EUR/JPY. The crucial contention level to watch is the 170.00 round mark. A breach of this level could drag the cross toward 168.10, the low of June 25. 

EUR/JPY daily chart