EUR/JPY Analysis: Bears Make Their Presence Known, but Long-Term Bullish Trend Holds Strong

The current EUR/JPY trading scenario shows a subtle mix of bullish and bearish signals, indicating a delicate balance in market sentiment.

On the daily chart, there’s a hint of bullish momentum, with the Relative Strength Index (RSI) hovering around 52, suggesting steady buying activity. However, the Moving Average Convergence Divergence (MACD) histogram displays red bars, indicating a potential shift towards negative momentum as sellers become more active.

Turning to the hourly chart, a more pronounced downward trend is evident. The RSI values have slightly declined, reaching as low as 46, while the diminishing green bars on the MACD further confirm the bearish momentum.

Despite these short-term bearish signals, it’s crucial to consider the broader context provided by the daily chart, which still reflects a predominantly bullish trend. To sustain this bullish momentum, buyers must defend the 20-day Simple Moving Average (SMA) at 162.85.

In summary, while there are indications of a temporary sellers’ market in the short term, the long-term bullish trend remains resilient. Investors should closely monitor key support levels to assess the potential continuation of the bullish trend.

EUR/JPY