EUR/JPY Price Analysis: Bearish sentiment takes over, 20-day SMA lost
- The daily RSI for EUR/JPY highlights a decline from overbought levels to negative territory, depicting seller dominance.
- Similar to the RSI, the daily MACD shows increasing negative momentum.
- On the hourly chart, low RSI values and a flat red MACD histogram point to a growing near-term bearishness.
The EUR/JPY pair trades at 164.65, tallying sharp losses on Thursday. Despite the increasing selling pressure, the long-term optimism remains intact, but bears are making their case as they reclaimed the 20-day Simple Moving Average (SMA) which worsened the outlook for the short term.
On the daily chart, the Relative Strength Index (RSI) for EUR/JPY has descended from the overbought readings into negative territory. The data suggests a downward momentum, indicative of a current dominant presence of sellers. At the same time, the Moving Average Convergence Divergence (MACD) histogram recorded fresh red bars which confirms a growing negative momentum.
EUR/JPY daily chart
Moving to the hourly chart, the RSI values are persistently recording low readings, venturing deep into the oversold territory. Here, the hourly MACD aligns with the daily outlook, displaying red bars which points to further negative momentum over the shorter span.
EUR/JPY hourly chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
