EUR/JPY Price Forecast: Falls to near 173.00 after pulling back from 14-month lows

• EUR/JPY retreats after reaching 173.91, the highest since July 2024, on Monday.
• Bullish bias continues to strengthen as the 14-day Relative Strength Index remains above the 50 mark.
• The currency cross may find its initial support at the nine-day EMA of 172.58.

EUR/JPY loses ground after opening from a gap up, trading around 173.10 during the European hours on Monday. The technical analysis of the daily chart suggests a persistent bullish bias as the currency cross is moving upwards within the ascending channel pattern.

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

On the upside, the EUR/JPY cross may approach the 173.91, the highest since July 2024, recorded on September 8, followed by the upper boundary of the ascending channel around the 174.10. A break above this crucial resistance zone would strengthen the bullish bias and support the currency cross to approach the all-time high of 175.43, reached in July 2024.

The primary support lies at the nine-day EMA of 172.58. A break below this level could weaken the short-term price momentum and prompt the EUR/JPY cross to test the ascending channel's lower boundary around 171.70, followed by the 50-day EMA of 171.14.

Further declines below the confluence support zone would undermine medium-term price momentum and push the EUR/JPY cross toward the 10-week low of 169.72, last seen on July 31.

EUR/JPY: Daily Chart