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EUR/JPY Price Analysis: Bulls continue to dominate but consolidation could occur

  • The daily RSI shows increasing buying momentum, although overbought conditions hint at a possible technical correction.
  • The hourly chart indicates a shift in short-term momentum towards sellers, and indicators are consolidating.

The EUR/JPY pair stands at 165.68, trading with slight gains still at multi-year highs. Current market trends are leaning bullish, which keeps buyers in a favorable position. However, daily indicators are approaching overbought conditions, while hourly indicators have already reached that threshold and appear to be consolidating ahead of the Asian session.

The RSI on the daily chart reveals a positive trend. It has risen since mid-April, from the mid-40s, into positive territory, with the latest reading at 65. This rise in the RSI reveals that buyers have dominated the market recently. However, an approach towards the overbought threshold suggests a possible market correction in the future.

EUR/JPY Daily Chart

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

EUR/JPY Hourly Chart

As for the overall trend, EUR/JPY is showing a short-term bullish trajectory, while maintaining its position above its 20-day SMA. Longer term, the pair remains above the 100-day and 200-day SMAs. This positioning could hint at a possible bullish continuation of the EUR/JPY pair.

EUR/JPY

Overview
Latest price today 166
Today Daily Change 0.31
Today Daily variation % 0.19
Today daily opening 165.69
Trends
SMA20 daily 164.19
50 daily SMA 163.26
SMA100 daily 160.88
SMA200 Journal 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
Fibonacci 61.8% daily 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

Source: Fx Street

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