Analyzing EUR/JPY Price: Bears Emerge While Long-Term Bullish Trend Holds Strong

The EUR/JPY pair is experiencing a slight downward movement, with minimal losses observed as it trades at 163.13. Despite these declines, the overall market sentiment remains predominantly bullish, although it is subject to fluctuations.

Examining the daily chart, we see indications of a somewhat positive to neutral momentum. The Relative Strength Index (RSI) has been hovering within the positive territory, registering a reading 52 in the latest session. While this suggests a slight bullish momentum, it also highlights the potential for shifts in market sentiment. Additionally, a red bar on the Moving Average Convergence Divergence (MACD) histogram indicates some negative momentum, signalling a readiness from sellers.

Turning our attention to the hourly chart, we notice more noticeable fluctuations. The RSI values have displayed a mild downward trend over the past few hours, reaching a low of 46. Similarly, the diminishing green bars on the MACD further confirm the prevailing bearish momentum.

In summary, although short-term indicators may suggest a preference for selling, it’s crucial to recognize that this occurs within a broader bullish trend, as evidenced by the daily chart. To maintain this bullish trajectory, buyers must defend the 20-day Simple Moving Average (SMA) at 162.85.

EUR/JPY