EUR/JPY Price Analysis: Bearish short-term trend surfaces, bullish outlook holds for broader timeframe

Even though daily chart indicators reveal weakening momentum, the overall trend remains positive.
In the hourly chart, the RSI deep in the negative area implies sellers are in charge during the day's trading.
To maintain momentum, the bulls need to defend the 20-day SMA.

Patricio Martín FXStreet

In Thursday's session, the EUR/JPY pair is trading at around 163.40, experiencing a minor loss. The broader perspective leans in favor of the bulls, indicating buying strength that keeps the pair above its 20, 100, and 200-day Simple Moving Averages (SMAs). Despite this, there is evidence of mounting selling pressure on the daily chart.

On the daily chart, the Relative Strength Index (RSI) descended from nearing overbought conditions last week towards 54. The MACD histogram also indicates that buyer momentum might be waning, as inferred from the flat green bars. These market indicators suggest potential near-term volatility in the pair's direction.

EUR/JPY daily chart

Transitioning to the hourly chart, RSI readings convey a more negative sentiment. The latest value stands at 44, signaling sellers as dominant in the short-term movements. The MACD histogram, however, prints green bars which adds neutrality to the intraday outlook.

EUR/JPY hourly chart

In conclusion, despite the negative sentiment on the hourly chart, the daily and broader metrics suggest that bulls maintain control of the bigger picture. The main task fo the buyers is to defend the 20-day SMA at around 163.00 and as long as the pair remains above this level, the outlook will be positive.

EUR/JPY

Overview
Today last price	163.39
Today Daily Change	-0.37
Today Daily Change %	-0.23
Today daily open	163.76

Trends
Daily SMA20	162.78
Daily SMA50	161.79
Daily SMA100	160.48
Daily SMA200	159.05

Levels
Previous Daily High	164.42
Previous Daily Low	163.44
Previous Weekly High	165.36
Previous Weekly Low	161.95
Previous Monthly High	163.72
Previous Monthly Low	158.08
Daily Fibonacci 38.2%	163.81
Daily Fibonacci 61.8%	164.05
Daily Pivot Point S1	163.32
Daily Pivot Point S2	162.89
Daily Pivot Point S3	162.34
Daily Pivot Point R1	164.3
Daily Pivot Point R2	164.85
Daily Pivot Point R3	165.28

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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