The EUR/JPY currency pair has been experiencing a strong bullish trend, with the daily chart showing a steady increase in the Relative Strength Index (RSI) from 44 to 60, indicating ongoing bullish momentum driven by market buyers. The Moving Average Convergence Divergence (MACD) also supports this perspective with rising green bars, signaling further progression of positive momentum. However, on the hourly chart, the RSI has dipped to 53, suggesting a temporary pause in the bullish momentum due to increasing sellers’ traction.
Despite the short-term pullback indicated in the hourly chart, the overall bullish outlook for EUR/JPY remains intact. The currency pair reached a high of 167.85 on Friday, reflecting the dominance of market buyers. While there may be potential transient pullbacks due to overbought signals in the hourly chart, the daily chart indicates a strong bullish momentum that is likely to continue.
In the bigger picture, EUR/JPY is currently positioned above its Simple Moving Averages (SMA) for the 20, 100, and 200-day periods, indicating that buyers are still in control. This suggests that the bullish trend is likely to persist in the long term despite any short-term fluctuations. Traders should keep an eye on the RSI and MACD indicators for any shifts in momentum that could signal a change in the current trend.
Overall, the EUR/JPY currency pair is showing signs of continued bullish momentum, supported by the daily RSI and MACD indicators. While there may be temporary pullbacks indicated in the hourly chart, the overall outlook remains positive for market buyers. Keeping a close watch on key indicators and market trends will be crucial for traders looking to capitalize on potential opportunities in the EUR/JPY market.