EUR/JPY Price Analysis: Bullish outlook prevails, despite sharp losses

The daily RSI of the EUR/JPY transitioned from its overbought threshold to near 60.
In the hourly chart, the RSI reveals intense short-term bearish momentum, with the MACD also depicting increased negative bias.
Any move below the primary SMAs could alter the bullish trend.

Patricio Martín FXStreet

The EUR/JPY pair demonstrates resilience, bouncing back after encountering stern resistance at around the pivotal 165.50 landmark. Having faced a downward momentum of 0.90%, the pair skillfully remains above key Simple Moving Averages (SMAs), underlining the persistent bullish sentiment. Yet, market participants are encouraged to prepare for potential short-term adjustments, as bears are gaining ground.

On the daily chart, the Relative Strength Index (RSI) took a big hit on Monday. Notwithstanding, the current value remains in the positive trend territory, potentially signaling the continuation of buying momentum. The Moving Average Convergence Divergence (MACD) prints decreasing green bars, suggesting that the tide might have turned in favor of the bears.

EUR/JPY daily chart

Turning to the hourly RSI, it is located in the negative territory. This situation highlights possible downward momentum, aligning with the downward trend depicted on the Moving Average Convergence Divergence (MACD) histogram, currently showing rising red bars, denoting strengthened negative momentum.

EUR/JPY hourly chart

Broadening the perspective, the EUR/JPY pair is positioned above the 20-day Simple Moving Average (SMA), having just bounced back strongly after meeting resistance at the crucial 165.50 level. This event furnishes a positive impression of the short-term trend. Additionally, the pair's placement above the 100 and 200-day SMA suggests an overall bullish long-term outlook. However, buyers shouldn’t call it a victory as bears are still around the corner.

EUR/JPY

Overview
Today last price	167.29
Today Daily Change	-2.04
Today Daily Change %	-1.20
Today daily open	169.33

Trends
Daily SMA20	164.81
Daily SMA50	163.61
Daily SMA100	161.2
Daily SMA200	159.96

Levels
Previous Daily High	169.4
Previous Daily Low	166.48
Previous Weekly High	169.4
Previous Weekly Low	164.4
Previous Monthly High	165.36
Previous Monthly Low	160.22
Daily Fibonacci 38.2%	168.28
Daily Fibonacci 61.8%	167.59
Daily Pivot Point S1	167.41
Daily Pivot Point S2	165.48
Daily Pivot Point S3	164.48
Daily Pivot Point R1	170.33
Daily Pivot Point R2	171.33
Daily Pivot Point R3	173.25

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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