- 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.
EUR/JPY
