EUR/JPY price forecast: Eyes bullish breakout above 172.50 barrier

• EUR/JPY may find an initial barrier around the upper boundary of the rectangle at 172.50.
• The 14-day RSI is positioned above 50, indicating a prevailing bullish bias.
• The initial support appears at the nine-day EMA of 171.81.

EUR/JPY extends its winning streak for the third successive session, trading around 172.40 during the European hours on Tuesday. The technical analysis of the daily chart suggests a potential for a bullish bias as the currency cross is attempting to break above the rectangular pattern.

The 14-day Relative Strength Index (RSI) is already above the 50 mark, supporting the bullish outlook. Additionally, the short-term price momentum is stronger as the EUR/JPY cross is positioned above the nine-day Exponential Moving Average (EMA).

On the upside, a successful breach above the upper boundary of the rectangle around 172.50 may offer the confirmation of the prevailing bullish sentiment and support the EUR/JPY cross to explore the region around 173.90, the highest since July 2024, recorded on July 28, 2025.

The nine-day EMA at 171.81 appears as the initial support. A break below this level would dampen the short-term price momentum and prompt the EUR/JPY cross to navigate the region around the rectangle's lower boundary at 170.00, followed by the 50-day EMA at 169.82 and the six-week low at 169.72, which was recorded on July 31. Further support appears at, followed by the two-month low at 168.46, recorded on July 1.

EUR/JPY: Daily Chart