EUR/JPY Price Analysis: Bears back down and now is the buyer’s turn
■The daily chart of EUR/JPY reveals a growing buying momentum, thanks to the RSI and the MACD strengthening.
■The hourly chart shows a shift in market dynamics as indicators favor the buyers.
■Key Simple Moving Averages underline EUR/JPY's superiority, hinting at the potential long-term upside.
The EUR/JPY pair stands at 164.88, showing mild gains of on Monday’s session. The pair exhibits a firm bullish momentum echoed in the strengthening of the indicators on the hourly and daily charts.
Examining the Relative Strength Index (RSI) on the daily chart, indicates a continued rise towards the upper bounds, reinforcing upward momentum. The Moving Average Convergence Divergence (MACD) supports this positive momentum through fresh green bars, indicating strong buyer dominance.
EUR/JPY daily chart
In the hourly chart, the RSI has shown divergence from negative to positive territory, ranging from a low of 40 to a high of 56, which suggests a recovery of the buyers in the session. The hourly Moving Average Convergence Divergence (MACD) supports this as it prints decreasing red bars.
EUR/JPY hourly chart
In evaluating the broader market perspective, according to the Simple Moving Average (SMA), the pair's position above the 20, 100, and 200-day SMAs points towards a potential long-term positive trend. As long as the buyers keep the price above these key levels, the outlook will continue to be in their favor.
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