EUR/JPY is currently experiencing a pullback within a strong uptrend on all major timeframes, including short, intermediate, and long-term. The pullback could potentially find support at the 100 SMA, indicating that any weakness in the pair is likely to be short-lived due to the overall bullish bias of the charts.
On the 4-hour chart, EUR/JPY has retraced to the 50 Simple Moving Average (SMA), but the uptrend remains intact in the short-term. There are currently no signs of a reversal in line with the dominant uptrend, and the 100 SMA at 168.49 has historically supported price on previous pullbacks, suggesting it may do the same if price dips lower. A break above 170.89 would establish a higher high and possibly indicate a continuation of the uptrend, with the next target being 171.60, the high of April 29.
The Relative Strength Index (RSI) is currently in the neutral zone, suggesting there is room for further upside before the pair becomes overbought. EUR/JPY would need to fall to 166.62, the 50-day SMA, to indicate a reversal of the dominant uptrend, and a break below the trendline at around 164.50 would confirm a trend reversal.
Overall, EUR/JPY is expected to continue rising given the bullish bias across all timeframes. The trend is likely to remain supportive, with potential pullbacks finding support at key moving averages. A break above the recent high could signal a continuation of the uptrend, while a move below key support levels would indicate a reversal of the trend. Traders should continue to monitor the price action and key levels to determine the future direction of EUR/JPY.
