EUR/JPY Price Analysis: Bulls hold their breath and consolidate gains after reaching fresh highs

In Thursday's session, the EUR/JPY recorded slight losses, settling at 160.86 after a peak at 161.40, its highest since early December. On the daily chart, the bulls took a breather following three consecutive days of gains. Meanwhile, the four-hour chart hints at consolidation from the bulls, albeit amidst overbought territory. On the fundamental side, the JPY remains pushed down due to the lack of guidance regarding the normalization of their monetary policy. On the same line, the Euro faced weakness in the last sessions due to the European Central Bank (ECB) dovish signals.

On the daily chart, the technical indicators reflect a mildly bullish environment in the near term despite the Relative Strength Index (RSI) showing a negative incline within a positive range. The Moving Average Convergence Divergence (MACD) exhibits flat green bars, indicating that the bullish momentum may pause. However, the overarching bullish trend remains intact as the asset sustains its position above the 20, 100, and 200-day Simple Moving Averages (SMAs), implying that the bulls still maintain a steady hold over the larger scenario.

Despite manifesting a flattish orientation in the positive space and the MACD continuing to exhibit unchanging green bars, the four-hour RSI suggests that the buyers retain dominance, albeit with reduced momentum like the daily chart.

EUR/JPY technical levels

EUR/JPY daily chart