EUR/JPY Price Forecast: Constructive view prevails near 177.50

• EUR/JPY strengthens near 177.45 in Friday's early European session. 
• A positive view of the cross prevails above the 100-day EMA, with the bullish RSI indicator.
• The immediate resistance level is seen at 177.86; the first support level to watch is 175.35.

The EUR/JPY cross trades in positive territory for the fourth consecutive day around 177.45 during the early European session on Friday. The Japanese Yen (JPY) softens against the Euro (EUR), even as core inflation in Japan accelerated in September for the first time since May.

The report came ahead of the Bank of Japan's (BoJ) policy meeting next week, where the central bank is anticipated to keep the interest rates unchanged. Markets have postponed expectations for the next rate hike to December at the earliest, with most expecting it early next year.

Technically, the constructive outlook of EUR/JPY remains in play, with the price being well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. The upward momentum is reinforced by the 14-day Relative Strength Index, which stands above the midline near 65.90. This suggests that further upside looks favorable in the near term. 

The immediate resistance level for the cross emerges at 177.86, the high of October 8. Sustained trading above this level could pick up more momentum and aim for 178.70, the upper boundary of the Bollinger Band. Further north, the next hurdle is seen at 179.00, a round figure. 

On the downside, the initial support level for EUR/JPY is located at 175.35, the low of October 21. Any follow-through selling below this level could see a drop to 173.70, the low of September 22. The additional downside filter to watch is 172.50, the lower limit of the Bollinger Band.

EUR/JPY daily chart