Home » EUR/JPY Price Analysis: Bullish momentum upheld, short-term market correction on the horizon

EUR/JPY Price Analysis: Bullish momentum upheld, short-term market correction on the horizon

by FX BrokerNews
  • The daily RSI was rejected near the overbought region.
  • Hourly chart indicators show a shift in short-term dynamics, with sellers gaining ground.
  • Despite the signs of potential short-term bearish correction, the pair still holds above key SMAs, denoting an overall bullish trend.

During Thursday’s session, the EUR/JPY pair experienced marginal losses of 0.26%. Despite intermittent fluctuations, an overall upward trend prevails, indicating a favorable position for buyers. However, recent subtle indications of selling pressure raise the possibility of a challenge to the continuity of the bullish trend in upcoming sessions.

On the daily chart, the Relative Strength Index (RSI) reflects a predominantly positive trajectory. Nonetheless, impending overbought conditions suggest a potential downward retracement may emerge soon, as buyers could opt to realize profits. Furthermore, the Moving Average Convergence Divergence (MACD) continues to exhibit green bars, signaling a consistent buying momentum.

EUR/JPY daily chart

Upon scrutiny of the hourly chart, the RSI displays fluctuations, with the most recent reading at 47. This figure significantly contrasts with the daily readings, indicating a potential resurgence of selling pressure in the short term. Furthermore, the MACD portrays red bars, amplifying evidence of mounting selling pressure on the shorter timeframes.

EUR/JPY hourly chart

When analyzing with Simple Moving Averages (SMAs), the broader scale indicates that, despite a negative outlook in the short term, the pair maintains its position above the 20, 100, 200-day Simple Moving Averages, suggesting that, on a wider scope, the buyers are still firmly in control. However, if the technical correction extends below any of these levels the trend might slowly shift in favor of the seller.


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