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

• 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.