EUR/JPY Price Analysis: Bears exert control, momentum seems limited
|- Daily chart displays continued bearish momentum with RSI lingering below 50.
- Hourly indicators also show negative but weakened momentum.
- Bulls must retake the 20-day SMA to brighten the technical outlook.
In Thursday's session, the EUR/JPY pair is trading at 161.33, with a 0.20% loss. Indicators suggest that sellers are in command within the current market, driving a bearish but weakening momentum. Despite this, a broader bullish sentiment persists, underlining the pair's position above key Simple Moving Averages (SMAs). However, as long as the pair stands below the 20-day SMA for the short term, the outlook will be tilted to the downside.
On the daily chart, the Relative Strength Index (RSI) fell below 50 into negative territory, towards at 48, pointing south. This indicates continued bearish momentum. The Moving Average Convergence Divergence (MACD) confirms this downward trend, as it displays red bars, but their decreasing nature hints that the momentum is slower.
EUR/JPY daily chart
On the hourly chart, a similar picture is seen. The RSI is currently at around 46 while the MACD histogram further corroborates the negative view with the presence of red bars.
EUR/JPY hourly chart
Despite the ongoing bearishness, the pair's position above its 100 and 200-day Simple Moving Averages suggests a positive overall trend on a broader scale. Therefore, while the market may experience short-term selling pressure, the longer-term outlook remains in favor of buyers. As the negative momentum seems to be waning, buyers might step in and move towards the 20-day SMA, which, in case of conquering it, would improve the pair's outlook.
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