EUR/JPY Price Analysis: Bulls consolidate gains after hitting highs since early December

In Thursday's session, the EUR/JPY declined slightly. A bullish outlook dominates the daily charts, showing signs of bulls gaining ground. Simultaneously, the four-hour chart indicators are hinting at a consolidation phase, stepping back from overbought conditions.

Analyzing the daily chart, the indicators shed light on a relatively stable scenario with a positive undertone. The flat projection of the Relative Strength Index (RSI) that it's ensconced in positive territory, along with the steady green bars of the Moving Average Convergence Divergence (MACD), essentially underpins a scenario that is favorable for buyers as it seems to be consolidating Wednesday’s 1.30% rally. Further contributing to the buying momentum, the pair's placement well above the 20, 100, and 200-day Simple Moving Averages (SMAs) accentuates the command of the bulls in the grand scheme of things despite a short-term pullback.

On the four-hour chart, an amalgamation of consolidating indicators and overbought conditions suggests that a correction may be incoming for the immediate short-term. The four-hour Relative Strength Index (RSI) follows a downtrend but remains positive, while the Moving Average Convergence Divergence (MACD) sustains its green bars, albeit flat. Such an array of factors depicts a temporary deceleration of the buying momentum, but the outlook is still skewed towards bullishness in the near term, given the current technical setting.

EUR/JPY levels to watch

EUR/JPY daily chart