EUR/JPY Bears Emerge, But Long-Term Bullish Outlook Persists

: George Solotarov; 29 March 2024; Hits: 143

EUR/JPY Bears Emerge, But Long-Term Bullish Outlook Persists

The EUR/JPY pair is trading slightly lower at 163.13, facing short-term bearish pressure within a broader bullish context. While the daily chart exhibits positive to neutral momentum, recent signals suggest a delicate balance that could tip in either direction.

Daily Chart: Bullish Trend with Mixed Signals

The Relative Strength Index (RSI) remains in positive territory (currently at 52), signaling some bullish strength. However, this reading hints at potential vulnerability to shifting sentiment. Additionally, a red bar on the Moving Average Convergence Divergence (MACD) histogram suggests negative momentum and indicates that sellers may be gaining traction.

Hourly Chart: Bearish Signals Emerge

The hourly chart reveals a clearer bearish bias. The RSI has been trending slightly downward, reaching 46, while the diminishing green bars on the MACD confirm growing negative momentum.

Key Outlook: Battle for the 20-Day SMA

Despite the short-term bearish signals, it's crucial to remember the broader bullish trend evident on the daily chart. For the long-term bullish outlook to remain intact, buyers must defend the 20-day Simple Moving Average (SMA) at 162.85.