EUR/JPY Price Analysis: Bulls remain dominant despite bearish signals on the daily and hourly chart
- The EUR/JPY is trading around 162.76, recording a 0.31% loss in Tuesday's trading session.
- The daily chart reveals that buyers are consolidating the last session's gains.
- Hourly indicators hint at a possible shift in trend with sellers in charge, and indicators near oversold territory.
In Tuesday's session, the EUR/JPY pair is trading at 162.76, with 0.31% losses. With a larger influence by buyers compared to sellers, the broader perspective suggests a predominant bullish trend despite the day-to-day loss as the buyers seem to be taking a breather.
On the daily chart, the Relative Strength Index (RSI) for the EUR/JPY pair is in positive territory, signaling the domination of buyers in the market but it points south. Concurrently, the Moving Average Convergence Divergence (MACD) indicates a growing selling momentum with rising red bars which corroborates the idea of a short-term downward consolidation.
EUR/JPY daily chart
Comparatively, The hourly RSI value is indicating a negative territory, with sellers dominating the market but near the 30 threshold which could suggest that for the rest of the session, the pair may continue consolidating. The hourly MACD histogram shows flat red bars, which indicates negative momentum.
EUR/JPY hourly chart
Despite the short-term negative outlook, the EUR/JPY pair is trading above its 20,100,200-day Simple Moving Averages, indicating that the long-term trend remains bullish. The negative signals from the RSI and MACD however, are that for the short term, the sellers are in charge, but to challenge the clear overall bullish trend, they need to at least conquer the 20-day SMA.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
