EUR/JPY bears lose steam and bulls dictate the pace
- The EUR/JPY is currently rallying upwards, standing at 162.90.
- Daily chart indicators show bullish momentum.
- After the break from the bears after a four-day slump, an underlying bullish control is evident.
In Wednesday's session, the EUR/JPY rose to 162.90, up by 0.70%. The pair's current situation on the daily chart leans neutral to bearish, with sellers taking a breather following a four-day losing streak. Nonetheless, stronger bullish momentum is being observed on the four-hour chart.
Buying momentum seems to be the dominating force when considering the daily chart indicators. The pair is positively positioned, showing an upward movement above its 20,100,200-day Simple Moving Averages (SMAs). Additionally, the Relative Strength Index (RSI) trajectory remains positive, highlighting further support for continuing a buying trend. Flat green bars on the Moving Average Convergence Divergence (MACD) complement this, reflecting a largely static yet bullish positioning.
Zooming into the shorter time frame, the four-hour chart extends this bullish narrative. The positive slope and territory of the four-hour RSI indeed affirm that buying momentum dominates. Similarly, the MACD’s flat green bars remain consistent, indicating sustained buying pressure.
It's significant to note that the bears appear to be on a temporary standby, with their selling momentum showing signs of losing steam after a four-day losing streak. This could be indicative of a short-term bullish outlook, thereby reinforcing that the bulls hold the upperhand.
Support Levels: 162.50, 161.30 (20-day SMA), 160.00.
Resistance Levels: 163.00, 163.50, 164.00.
EUR/JPY daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
