- On the daily chart, the EUR/JPY pair maintains bullish sentiment, as indicated by the rising RSI and decreasing negative momentum through the MACD.
- On the hourly chart, the RSI shows that the pair is correcting overbought conditions.
The pair EUR/JPY operates at 164.22, registering a slight rebound in Tuesday's session. This slight appreciation points to continued strength of the Euro against the Japanese Yen. Despite small market fluctuations suggesting temporary corrections, the overall technical outlook remains largely bullish. To reinforce this, the bulls intervened and reclaimed the 20-day SMA, improving the outlook for buyers.
The daily chart reveals that the EUR/JPY pair maintains bullish momentum, indicated by its Relative Strength Index (RSI) sitting at 55, comfortably within the positive trend zone. This is supported by the falling red bars of the moving average convergence (MACD) histogram, which demonstrates the decline of negative momentum.
EUR/JPY daily chart
On the hourly chart, recent RSI readings range between 71 and 54, suggesting that buyers are taking a breather. Furthermore, the relatively flat green bars of the hourly MACD indicate almost stagnant positive momentum.
EUR/JPY hourly chart
The broader outlook for EUR/JPY based on its position relative to the simple moving average (SMA) provides further insight. Today's EUR/JPY jump above the 20-day SMA may signal a strong short-term rally, suggesting buying opportunities for traders. Furthermore, its position above the 100-day and 200-day SMA confirms a long-term bullish trend, implying that the Euro maintains its strength against the Japanese Yen.
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.
