EUR/JPY Price Analysis: Bears hold short-term dominance, long-term bullish outlook persists
|- Daily chart analysis reveals heightened selling pressure with the RSI and MACD deep in the negative zone.
- The hourly chart saw a short-lived recovery in the indicators.
- Although the pair has experienced recent declines, its positioning above the key SMAs signals an ongoing bullish outlook.
In Monday's session, the EUR/JPY pair is trading at 160.57, showing a daily decrease of 0.19%. Despite ongoing fluctuations, it is currently observed that the sellers are moderating the buyers' strength. A short-lived recovery seen in the shorter time frames seems to be waning.
On the daily chart, the Relative Strength Index (RSI) measures around 41, indicating strong selling pressure. A downtrend was noted from being in positive territory a week ago at a peak of approximately 65 as the seller seized control. Concurrently, the Moving Average Convergence Divergence (MACD) histogram is witnessing rising red bars, interpreting a growth in negative momentum.
EUR/JPY daily chart
Moving to the hourly chart of EUR/JPY, the RSI is almost equivalent to the daily chart showing an RSI of around 40 after hitting oversold conditions earlier in the session. The MACD histogram depicts decreasing green bars, indicating that the built buying momentum is declining.
EUR/JPY hourly chart
In the larger picture, the EUR/JPY pair, despite recently losing ground, remains above the 100 and 200-day Simple Moving Averages (SMAs). This suggests that on larger time frames, bullish sentiment persists.
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