EUR/JPY Price Forecast: Key upside barrier emerges near 180.00

• EUR/JPY softens to around 179.70 in Tuesday's early European session. 
• A positive view of the cross prevails above the 100-day EMA, with the bullish RSI indicator.
• The crucial upside barrier is seen at 180.00; the first support level to watch is 178.56.

The EUR/JPY cross declines to near 179.70 during the early European session on Tuesday. The cross retreats after reaching new record highs in the previous session. However, the potential downside for the cross might be limited amid the ongoing weakening of the Japanese Yen (JPY).

Japan's Prime Minister Sanae Takaichi urged the Bank of Japan (BoJ) to maintain low interest rates, emphasizing that monetary policy should support both robust economic growth and stable price increases.

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

The key resistance level for the cross emerges at the 180.00 psychological level. Sustained trading above this level could pick up more momentum and aim for the upper boundary of the Bollinger Band of 180.20. Further north, the next hurdle is seen at 181.00, the round mark. 

On the downside, the initial support level for EUR/JPY is located at 178.56, the high of October 31. Any follow-through selling below this level could see a drop to 176.28, the low of November 6. The additional downside filter to watch is 175.80, the lower limit of the Bollinger Band. 

EUR/JPY daily chart