• EUR/JPY stays close to fresh all-time high of 176.35 reached on Tuesday.
• The 14-day Relative Strength Index remains near 70, strengthening the bullish bias.
• The initial support lies at the nine-day EMA of 174.39.

EUR/JPY edges lower after registering more than 1.5% gains in the previous session, trading around 176.00 during the European hours on Tuesday. The technical analysis of the daily chart indicates strengthening of a bullish bias as the currency cross remains above the ascending channel pattern.

The 14-day Relative Strength Index (RSI) remains slightly below 70 mark, suggesting that bullish bias is strengthening. A break above the 70 mark would suggest an overbought situation and a downward correction anytime soon. Additionally, the short-term price momentum is stronger as the EUR/JPY cross is positioned above the nine-day Exponential Moving Average (EMA).

On the upside, the EUR/JPY cross may target the new all-time high of 176.35, which was recorded on October 7. As the market bias is bullish, the cross may explore the region around the psychological level of 177.00.

A return within the ascending channel would prompt the EUR/JPY cross to test the nine-day EMA at 174.39. Further declines below the level would dampen the short-term price momentum and put downward pressure on the currency cross to approach the lower boundary of the channel around 173.20, followed by the 50-day EMA at 172.77.

A drop below the 50-day EMA would signal weakening medium-term momentum and could drive the EUR/JPY pair lower toward the three-month low of 169.72, last seen on July 31.

EUR/JPY: Daily Chart