EUR/JPY Price Forecast: Constructive outlook remains in play above 177.00

• EUR/JPY posts modest gains around 177.15 in Thursday'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 178.23; the first support level to watch is 175.70.

The EUR/JPY cross trades with mild gains near 177.15 during the early European session on Thursday. The Japanese Yen (JPY) softens against the Euro (EUR) amid improved risk sentiment. Additionally, the uncertainty about the timing of the next Bank of Japan (BoJ) move could also undermine the JPY and act as a tailwind for the cross. Analysts expect Japan's new Prime Minister Sanae Takaichi to pursue aggressive fiscal spending plans and resist policy tightening. 

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 55.60. This suggests that further upside looks favorable in the near term. 

The immediate resistance level for the cross emerges at 178.23, the high of October 27. Sustained trading above this level could pick up more momentum and aim for 178.45, the upper boundary of the Bollinger Band. Further north, the next hurdle is seen at the 179.00 psychological level. 

On the downside, the initial support level for EUR/JPY is located at 175.70, the low of November 5. Any follow-through selling below this level could see a drop to the 175.10-175.00 zone, representing the lower limit of the Bollinger Band and round mark. The additional downside filter to watch is 173.48, the low of September 19. 

EUR/JPY daily chart