- 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.
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.
