EUR/JPY Price Forecast: Rises to near 177.50, records fresh highs within overbought zone

• EUR/JPY reached 177.46, an all-time high on Wednesday.
• The 14-day Relative Strength Index moves above 70, suggesting a potential for a downward correction.
• The currency cross may find its primary support at the nine-day EMA of 175.16.

EUR/JPY remains stronger for the fourth successive session, trading around 177.40 during the European hours, near 177.46, an all-time high reached on Wednesday. The technical analysis of the daily chart indicates that short-term price momentum is stronger as the currency cross rises above the nine-day Exponential Moving Average (EMA).

However, the 14-day Relative Strength Index (RSI) moves slightly above the 70 mark, suggesting that the EUR/JPY cross is trading in an overbought territory and a risk for a downward correction at any time soon.

The EUR/JPY cross may target the new all-time high of 176.46, which was recorded on October 8. Further advances would support the currency cross to explore the region around the psychological level of 177.00.

On the downside, the primary support appears at the nine-day EMA of 175.17. A break below this level could weaken the short-term price momentum and lead the EUR/JPY cross to test the 50-day EMA at 172.99, followed by the five-week low of 172.14, which was recorded on September 9.

Further declines would weaken the medium-term price momentum and put downward pressure on the currency cross to navigate the region around the three-month low of 169.72, last seen on July 31.

EUR/JPY: Daily Chart