- On the daily chart, indicators point to a possible shift towards negative momentum.
- On the hourly chart, the RSI and MACD regain negative ground.
- The bulls need to safely hold the 20-day SMA to avoid further declines.
In the Wednesday session, the EUR/JPY pair is trading with slight losses at 163.75. Despite the uncertainties, the overall market sentiment seems to favor buyers, given the pair's dominant position above its key 20,100 and 200-day simple moving averages (SMA). However, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) signal an upcoming change in momentum, hinting at increasing selling pressure.
On the daily chart, the RSI indicators remain in positive territory, with a bearish trend that could indicate a possible change to a negative trend. On the other hand, the MACD prints decreasing green bars, further reinforcing the weakening bullish momentum.
EUR/JPY daily chart
Looking at the hourly chart, the RSI values show a positive slope, signaling greater buying momentum. The low at 31 clearly shows that market sentiment has shifted to a bearish stance on Wednesday, but in the meantime, indicators appear to be consolidating. Furthermore, the red bars on the MACD histogram confirm the presence of negative momentum.
EUR/JPY hourly chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
