EUR/JPY Price Analysis: Consolidation phase imminent as bulls retreat
Source Fxstreet
- The daily RSI and MACD are edging downwards but remain in positive territory hinting at a possible consolidation phase that could be brief.
- On the hourly chart, indicators have shifted into the negative zone, further pointing towards an ongoing correction phase.
- The EUR/JPY's position above main SMAs keeps a long-term bullish sentiment alive despite the recent pullback.
In Wednesday's session, the EUR/JPY pair retreated slightly to 170.29, demonstrating an immediate dampening of the bullish momentum. However, since it remains close to cycle highs of 171.60, the consolidation period might not last long. Traders should observe the 170-168.00 range for potential correction movements before affirming changes to the outlook.
In the daily analysis, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicate a slight downward movement but still remain in the positive region. Both demonstrate the stopped short bullish trend which may lead to a short consolidation phase.
EUR/JPY daily chart
On the hourly chart, both RSI and MACD have now edged into the negative zone, corroborating with the indication of an ongoing corrective phase, which is likely response to recent gains.
EUR/JPY hourly chart
Notably, the current position of the EUR/JPY pair above the 20-day SMA at 168.45, though threatened, maintains the short-term bullish sentiment. Any movements below this could, however, fundamentally shift the bullish scenario. Below it, the 100 and 200-day SMA offer additional supportive barriers in case sellers come in strong.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Bitcoin experienced a sharp decline this weekend, briefly erasing its 2025 gains and dipping below its year-opening value of $93,507. The cryptocurrency fell to a low of $93,029 on Sunday, representing a 25% drop from its all-time high in October. Although it has rebounded slightly to around $94,209, the pressures on the market remain significant.
The downturn occurred despite the reopening of the U.S. government on Thursday, which many had hoped would provide essential support for crypto markets. This year initially appeared promising for cryptocurrencies, particularly after the inauguration of President Donald Trump, who has established the most pro-crypto administration thus far. However, ongoing political tensions—including Trump's tariff strategies and the recent government shutdown, lasting a historic 43 days—have contributed to several rapid price pullbacks for Bitcoin throughout the year.
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Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
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