EUR/JPY Price Analysis: Bears hold short-term dominance, bulls must defend the 20-day SMA

Indicators on the daily chart signal a possible shift toward negative momentum.
The hourly chart shows RSI and MACD somewhat recovering in negative territory.
Bulls need to maintain the 20-day SMA securely to fend off further dips.

Patricio Martín FXStreet

In Wednesday's session, EUR/JPY is trading with mild losses at 163.75. Despite uncertainties, the broader market sentiment appears to favor the buyers, given the pair's dominant position above its key Simple Moving Averages (SMAs) of 20,100 and 200 days. However, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators signal an upcoming shift in momentum, hinting at increased strength in selling pressure.

On the daily chart indicators for the RSI remain in positive territory, with a downward trend which may signal a potential shift towards a negative trend. The MACD on the other hand, prints decreasing green bars, further reinforcing the weakened bullish momentum.

EUR/JPY daily chart

Regarding the hourly chart, the RSI values display a positive slope, signaling increased buying momentum. The lowest peak at 31 clearly shows that market sentiment has shifted to a bearish stance on Wednesday but in the meantime, indicators seem to be consolidating. Furthermore, the MACD) histogram's red bars confirm the presence of negative momentum.

EUR/JPY hourly chart

EUR/JPY

Overview
Today last price	163.72
Today Daily Change	-0.44
Today Daily Change %	-0.27
Today daily open	164.16

Trends
Daily SMA20	162.76
Daily SMA50	161.74
Daily SMA100	160.46
Daily SMA200	159.01

Levels
Previous Daily High	164.41
Previous Daily Low	163.96
Previous Weekly High	165.36
Previous Weekly Low	161.95
Previous Monthly High	163.72
Previous Monthly Low	158.08
Daily Fibonacci 38.2%	164.24
Daily Fibonacci 61.8%	164.13
Daily Pivot Point S1	163.94
Daily Pivot Point S2	163.73
Daily Pivot Point S3	163.5
Daily Pivot Point R1	164.39
Daily Pivot Point R2	164.62
Daily Pivot Point R3	164.84

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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