EUR/JPY Price Forecast: Constructive outlook prevails, first upside barrier emerges above 172.00

• EUR/JPY weakens to near 171.60 in Friday's early European session. 
• The constructive outlook of the cross remains intact above the key 100-day EMA, with the bullish RSI indicator. 
• The immediate resistance level emerges at 172.20; the first support level to watch is 170.30.

The EUR/JPY cross loses traction to around 171.60 during the early European session on Friday. The Japanese Yen (JPY) edges higher against the Euro (EUR) after the Japanese trade envoy's comments. Early Friday, Ryosei Akazawa said that the United States (US) has agreed to correct a presidential order on tariffs and refund any excess duties collected in error. Akazawa further stated that there was no disagreement between the US and Japan over reciprocal tariffs.

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 60.80, suggesting that further upside looks favorable. 

On the bright side, the first upside barrier for the cross emerges at 172.20, the high of August 7. Any follow-through buying above this level could pave the way to 173.58, the upper boundary of the Bollinger Band. A decisive break above this level could pick up more momentum and aim for the crucial resistance level in the 173.90-174.00 zone, representing the high of July 28 and the psychological level. 

In the bearish case, the initial support level for the EUR/JPY is seen at 170.30, the lower limit of the Bollinger Band. A breach of this level could drag the cross toward 170.00, the round figure. The next contention level is located at 168.63, the low of June 27. 

EUR/JPY daily chart