• EUR/JPY may find its primary barrier at the all-time high of 178.23.
• The 14-day Relative Strength Index has pulled back from around the 70 level, indicating a downward correction.
• The primary support lies at the crucial level of 177.00.

EUR/JPY halts its five-day winning streak, trading around 177.20 during the European hours on Tuesday. The technical analysis of the daily chart indicates the prevailing bullish bias as the currency cross moves within the ascending channel pattern.

The 14-day Relative Strength Index (RSI) has retreated from the vicinity of the 70 mark, signaling an ongoing downward corrective move. However, it remains above the 50 level, indicating that the overall bullish bias persists. The short-term price momentum is stronger as the EUR/JPY cross remains above the nine-day Exponential Moving Average (EMA).

On the upside, the EUR/JPY cross may target the all-time high of 178.23, which was recorded on October 27. Further advances would support the currency cross to explore the region around the upper boundary of the ascending channel around 183.20.

The EUR/JPY cross may test its primary support at the psychological level of 177.00, followed by the confluence support zone around the nine-day EMA of 176.91 and the ascending channel’s lower boundary around 176.60. A break below this confluence support zone would undermine the short-term bullish momentum, potentially putting downward pressure on the currency pair toward the 50-day EMA region near 174.53.

Further declines below the 50-day EMA would weaken the medium-term price momentum and prompt the EUR/JPY cross to test the seven-week low of 172.14, which was recorded on September 9.

EUR/JPY: Daily Chart