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.