EUR/JPY Price Analysis: Bulls sustain upward momentum despite investors taking profits
- The daily RSI shows strong buying momentum, deep in positive territory.
- Hourly chart displays a contrast, as RSI dips into the negative zone and MACD shows flat red bars, indicating short-term selling traction.
- As the pair approached cycle highs, a pause in the momentum seemed probable before a retest.
In Wednesday's session, the EUR/JPY pair maintains robust bullish momentum, despite encountering selling pressure and declining to 168.63. Despite brushing against highs around the 170.00 mark, investors temporarily halt, potentially indicating short-term consolidation and this pause could pave the way for further upward movements.
On the daily chart, the Relative Strength Index (RSI) stands in the positive territory, reflecting an upward momentum from bulls but points down indicating the mentioned halt in the bullish traction.
EUR/JPY daily chart
The hourly chart, in contrast, presents a weaker picture. The RSI dipped into the negative territory with the latest reading at 45. The Moving Average Convergence Divergence (MACD) remains bearish, printing flat red bars, suggesting short-term selling pressure. However, indicators seem to recover in this frame ahead of the Asian session.
EUR/JPY hourly chart
Reflecting on EUR/JPY's broader picture, it's in a bullish short- and long-term position as it stays above the 20, 100, and 200-day SMAs. This posture suggests a strong upward momentum for the pair, poised for continued bullishness.
In conclusion, while the overall technical outlook for EUR/JPY remains bullish based on the SMA analysis and daily chart, traders need to monitor the extent of the correction. Still, any movement that keeps the pair above its main SMAs wouldn’t threaten the positive outlook.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
