EUR/JPY Price Forecast: Eyes record highs after moving above 178.00

• EUR/JPY may explore the region around the all-time high of 178.82.
• The 14-day Relative Strength Index remains above the 50 mark, strengthening the bullish bias.
• The initial support lies at the psychological level of 178.00.

EUR/JPY gains ground for the second successive session, trading around 178.10, higher by more than 0.25%, during the early European hours on Monday. The short-term price momentum is stronger as the currency cross is positioned above the nine-day Exponential Moving Average (EMA). Additionally, the 14-day Relative Strength Index (RSI) is remaining above the 50 mark, indicating the strengthening of a bullish bias.

The EUR/JPY cross may target the crucial level of 178.50, followed by the all-time high of 178.82, reached on October 30. A successful break above this level would open the doors for the currency cross to explore the region around the psychological level of 180.00.

On the downside, the immediate support appears at the psychological level of 178.00, followed by the nine-day EMA at 177.33. A break below the latter would weaken the short-term price momentum and prompt the EUR/JPY cross to test the ascending trendline around 176.40, followed by the 50-day EMA at 175.39.

Further declines below this crucial support zone would cause the emergence of the bearish bias and put downward pressure on the EUR/JPY cross to navigate the region around the two-month low of 172.14, which was recorded on September 9.