EUR/JPY Price Analysis: Bulls continue dominating, yet a consolidation may be incoming

The daily RSI reveals increasing buying momentum, yet nearing overbought conditions hint at a potential technical correction ahead.
The hourly chart indicates a shift in short-term momentum towards sellers, and indicators consolidate.

Patricio Martín FXStreet

The EUR/JPY stands at 165.68, trading with mild gains still in multi-year highs. Current market trends lean towards bullish momentum, keeping buyers in a favorable position. However, daily indicators are nearing overbought conditions, while the hourly ones have already reached that threshold and seem to be consolidating ahead of the Asian session.

The Relative Strength Index (RSI) on the daily chart reveals a positive trend. It has climbed since mid-April from the mid-40s deep into positive territory with the latest reading at 65. This increase in RSI reveals that buyers have recently dominated the market. However, an approach towards the overbought threshold suggests a potential future market correction looming.

EUR/JPY Daily Chart

On the other hand, the hourly chart shows a slight fluctuation in RSI values, which have swung between 48 and 71 during the session and buyers now seem to be taking a breather. The Moving Average Convergence Divergence (MACD) prints flat green bars, adding arguments to a stagnant momentum.

EUR/JPY Hourly Chart

Regarding the overall trend, the EUR/JPY displays a bullish trajectory in the short term while maintaining its position above its 20-day Simple Moving Average (SMA). Turning to a longer time frame, the pair remains above 100- and 200-day SMAs. Such positioning could hint at the potential continuation of bullishness for the EUR/JPY pair.

EUR/JPY

Overview
Today last price	166
Today Daily Change	0.31
Today Daily Change %	0.19
Today daily open	165.69

Trends
Daily SMA20	164.19
Daily SMA50	163.26
Daily SMA100	160.88
Daily SMA200	159.79

Levels
Previous Daily High	165.74
Previous Daily Low	164.63
Previous Weekly High	165.03
Previous Weekly Low	162.67
Previous Monthly High	165.36
Previous Monthly Low	160.22
Daily Fibonacci 38.2%	165.32
Daily Fibonacci 61.8%	165.05
Daily Pivot Point S1	164.97
Daily Pivot Point S2	164.24
Daily Pivot Point S3	163.85
Daily Pivot Point R1	166.08
Daily Pivot Point R2	166.47
Daily Pivot Point R3	167.2

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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