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EUR/JPY Price Analysis: Bulls struggle to hold 20-day SMA, bears hold firm

  • The daily RSI registers a balanced reading at 50, while the MACD shows a bearish crossover.
  • The pair stabilizes near the 20-day SMA, with buyers trying to avoid losses below it.
  • The underlying uptrend remains intact, protected by the 100-day and 200-day SMAs.

In the Friday session, the EUR/JPY pair is seen consolidating after a significant bullish wave that took it close to multi-year highs around 171.00, oscillating around the crucial 169.00 level. The stabilization at this point is particularly corroborated by the proximity to the 20-day SMA near 169.60, which despite falling below, the cross will attempt to defend as it serves as strong support.

The RSI on the daily chart now reads a stable 53, reflecting a balanced market sentiment between buyers and sellers. This neutral RSI implies that market participants are currently closely observing the future direction before making a decision. The daily Moving Average Convergence/Divergence (MACD) has recently recorded a bearish crossover, an occurrence when the MACD line dips below the signal line. This crossover potentially signals short-term bearish pressure, opening possibilities for a temporary correction or further consolidation before resuming the bullish march.

EUR/JPY daily chart

However, the broader uptrend in EUR/JPY remains unaffected. The support formed by the 100-day and 200-day SMAs around 164.00 and 161.00, respectively, form an important bulwark against prolonged bearish moves. Therefore, although recent sessions brought some hope to the bears, these moves should be treated as correctives rather than structural changes in the trend.

EUR/JPY

Summary
Latest price today 169.23
Today’s daily change -0.23
Daily change % today -0.14
Today’s daily opening 169.46
Trends
SMA20 Journal 169.54
SMA50 Daily 166.96
SMA100 Journal 164.4
SMA200 Journal 161.56
Levels
Previous Daily High 170.29
Previous Daily Low 169.21
Previous Weekly High 170.8
Previous Weekly Low 169.07
Previous Monthly High 170.8
Previous Monthly Low 164.02
Daily Fibonacci 38.2% 169.62
Daily Fibonacci 61.8% 169.88
Daily Pivot Point S1 169.02
Daily Pivot Point S2 168.57
Daily Pivot Point S3 167.94
Daily Pivot Point R1 170.1
Daily Pivot Point R2 170.74
Daily Pivot Point R3 171.18

Source: Fx Street

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