EUR/JPY Price Forecast: Reaches fresh all-time highs above 176.00

• EUR/JPY marked an all-time high of 176.24 on Monday.
• The 14-day Relative Strength Index advances toward 70, strengthening the bullish bias.
• The primary support lies at the nine-day EMA of 174.02.

EUR/JPY opened at a gap-up, extending its gains and trading around 176.20 during the Asian hours on Monday. The technical analysis of the daily chart indicates strengthening of a bullish bias as the currency cross has broken above the ascending channel pattern.

Additionally, the 14-day Relative Strength Index (RSI) rises toward the 70 mark, suggesting that bearish bias is strengthening. A break above the 70 mark would suggest an overbought situation and a downward correction anytime soon. 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, the EUR/JPY cross reached an all-time high of 176.24, which was recorded on October 6. As the market bias is bullish, the cross may explore the region around the psychological level of 177.00.

A pullback toward the ascending channel would prompt the EUR/JPY cross to test the nine-day EMA of 174.02. Further declines would weaken the short-term price momentum and put downward pressure on the currency cross to approach the lower boundary of the channel around 173.00, followed by the 50-day EMA at 172.64.

A break below the 50-day EMA would weaken the medium-term price momentum and put downward pressure on the EUR/JPY cross to navigate the region around the three-month low of 169.72, recorded on July 31.

EUR/JPY: Daily Chart