EUR/JPY Price Analysis: Consolidation phase imminent as bulls retreat

Source Fxstreet
May 29, 2024 21:19
  • 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.

 

EUR/JPY

Overview
Today last price 170.22
Today Daily Change -0.43
Today Daily Change % -0.25
Today daily open 170.65
 
Trends
Daily SMA20 168.21
Daily SMA50 166.17
Daily SMA100 163.71
Daily SMA200 161.16
 
Levels
Previous Daily High 170.8
Previous Daily Low 170.29
Previous Weekly High 170.5
Previous Weekly Low 169.05
Previous Monthly High 171.6
Previous Monthly Low 162.28
Daily Fibonacci 38.2% 170.6
Daily Fibonacci 61.8% 170.48
Daily Pivot Point S1 170.36
Daily Pivot Point S2 170.07
Daily Pivot Point S3 169.85
Daily Pivot Point R1 170.87
Daily Pivot Point R2 171.09
Daily Pivot Point R3 171.38

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Natural Gas faces upside pressure as European traders prepare for next heating seasonNatural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
Author  FXStreet
Natural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
placeholder
Solana Empty Glasses: BEER Coin Fizzles 70% In Alleged Rug PullThe Solana blockchain has revealed a sobering story, adding to the turbulence in the bubbly world of memecoins, such as BEER. The coin rose to prominence in recent weeks, experienced a dramatic price
Author  NewsBTC
The Solana blockchain has revealed a sobering story, adding to the turbulence in the bubbly world of memecoins, such as BEER. The coin rose to prominence in recent weeks, experienced a dramatic price
placeholder
Tesla shareholders back Musk pay package, Adobe's outlook - what's moving marketsInvesting.com -- U.S. stock futures were mixed on Friday, after a streak of record high closes for the S&P 500 and Nasdaq Composite stretched into a fourth straight session. In a victory for Tesla (NA
Author  Investing.com
Investing.com -- U.S. stock futures were mixed on Friday, after a streak of record high closes for the S&P 500 and Nasdaq Composite stretched into a fourth straight session. In a victory for Tesla (NA
goTop
quote