EUR/JPY Price Analysis: Bullish Momentum Holds Despite Minor Dip Before Asia
- EUR/JPY was observed trading around the 162.00 region, experiencing a slight pullback on the day.
- The overall technical analysis points towards a prevailing bullish sentiment for the currency pair.
- Key Simple Moving Averages indicate buying interest, while the Relative Strength Index is neutral, and the Moving Average Convergence Divergence suggests selling pressure.
In the lead-up to Tuesday's Asian trading session, EUR/JPY has seen a minor decline, trading near the 162.00 mark. Despite a sell signal from one momentum indicator, the broader technical landscape suggests underlying bullish strength, supported by several key moving averages.
The EUR/JPY pair currently displays a bullish technical outlook. While the Moving Average Convergence Divergence indicator is showing a sell signal, potentially indicating some short-term downward pressure, the longer-term trend appears positive. The Relative Strength Index resides in neutral territory around the 52 level, not providing a strong directional cue. However, the 20-day, 100-day, and 200-day Simple Moving Averages are all signaling buy opportunities, underscoring sustained bullish momentum across various time horizons. Similarly, the 30-day Exponential Moving Average and Simple Moving Average also support this upward trajectory. The Stochastic %K and Stochastic RSI Fast are both currently neutral.
Considering potential trading levels, immediate support is identified at 162.01, followed by 161.97 and then a lower level at 161.92. On the resistance side, the first barrier is at 162.17, with subsequent resistance levels at 162.22 and 162.68.
Daily Chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
