EUR/JPY Price Forecast: Holds gains near 176.50 due to persistent bullish bias

• EUR/JPY may target its primary barrier at the all-time high of 177.94.
• The 14-day Relative Strength Index remains above the 50 level, strengthening bullish bias.
• The initial support appears at the ascending channel's lower boundary around 176.00.

EUR/JPY gains ground after two days of losses, trading around 176.50 during the European hours on Monday. The technical analysis of the daily chart indicates a prevailing bullish bias as the currency cross remains within the ascending channel pattern.

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

On the upside, the EUR/JPY cross may find its initial resistance at the record high of 177.94, which was recorded on October 9. A break above this level would prompt the currency cross to test the upper boundary of the ascending channel around the psychological level of 179.00.

The immediate support lies at the ascending channel's lower boundary around the psychological level of 176.00, followed by the nine-day EMA of 175.79. A break below this crucial support zone would weaken the bullish bias and put downward pressure on the EUR/JPY cross to navigate the region around the 50-day EMA at 173.50, followed by the six-week low of 172.14, which was recorded on September 9.

EUR/JPY: Daily Chart