EUR/JPY Price Analysis: Bearish momentum gains steam, long-term bullish signals warrant vigilance

The EUR/JPY pair is currently trading around 162.85, representing a decline of 0.30% during Monday's session. Bearish cues are intensifying as seen in the increase in selling momentum, which signals a possible shift from the preceding bullish trend.

On the daily chart for EUR/JPY, the most recent Relative Strength Index (RSI) reading fell near negative territory. This situation tends to indicate a growing selling momentum. Concurrently, the Moving Average Convergence Divergence (MACD) histogram showcases rising red bars, implying a surge in negative momentum.

EUR/JPY daily chart

Assessing the hourly chart, the EUR/JPY pair showcases similar bearish sentiments. The RSI dipped near the oversold territory demonstrating the sellers' dominance in the market over the recent hours. Adding to this, the hourly MACD histogram reinforces this sentiment, illustrating rising red bars indicating a tilt towards negative momentum.

EUR/JPY hourly chart

Scrutinizing the broader outlook, EUR/JPY portrays a blend of bullish and bearish signals. A bullish stance manifests through its standing above the 100-day and 200-day Simple Moving Averages (SMA), revealing a positive trend for the pair in the long run. However, the cross has dipped just below the 20-day SMA today, inferring a potential bearish shift in the short term.

In summary, although the longer-term trends demonstrate a predominantly bullish stance for EUR/JPY, recent readings from both the daily and hourly charts suggest a possible shift towards a sellers' market which could fuel additional downward movements in case the buyers fail to step in.