The EUR/JPY pair experienced a decline to 164.72 on Friday, showcasing a bearish sentiment in the market. Despite this, the pair remains positioned above key Simple Moving Averages (SMAs), indicating ongoing dominance by buyers. The daily chart signals a negative trend, with the Relative Strength Index (RSI) falling into negative territory and the Moving Average Convergence Divergence (MACD) showing bearish momentum.
The hourly chart also reflects a negative trend, with RSI hovering around the 40 level and MACD indicating a lack of strong buying momentum. This suggests that sellers are dominating the market in the shorter time frames. Although the EUR/JPY remains above its longer-term SMAs of 100 and 200 days, the fall of the 20-day SMA suggests a bearish short-term outlook. Bears may try to reclaim the 100-day SMA at 161.70, which could worsen the technical outlook.
In terms of technical indicators, the daily RSI and MACD are hinting at increasing selling pressure. The hourly RSI and MACD also reflect a bearish sentiment, with RSI around the 40 level and MACD showing a lack of buying momentum. Despite these bearish signals, the EUR/JPY pair remains positioned above key SMAs, suggesting ongoing dominance by buyers.
The daily chart highlights the negative trend in the market, with the RSI falling into negative territory and the MACD depicting bearish momentum. On the hourly chart, the RSI continues to suggest a negative trend, while the MACD shows flat green bars, indicating a lack of strong momentum in the shorter time frames. Despite remaining above longer-term SMAs, the fall of the 20-day SMA indicates a bearish short-term outlook.
Overall, while the EUR/JPY pair may be facing some bearish pressure in the short term, the longer-term technical indicators suggest a bullish momentum. The positioning above key SMAs hints at ongoing dominance by buyers, despite the current negative trend in the market. Traders should keep an eye on key levels, such as the 100-day SMA at 161.70, which could signal a shift in the technical outlook if breached by bears.
