- Flattening indicators on the daily chart may signal a period of consolidation.
- The flat RSI slope and falling MACD bars on the hourly chart translate into a neutral sentiment for the session.
The EUR/JPY currency pair stands at 164.71, reflecting a persistent bullish upsurge as it cleared daily losses and defended the 20-day Simple Moving Averages (SMA). However, caution is warranted considering the shifting market environment as the flattening momentum, revealed on the daily and hourly chart may cool down the bullish outlook.
On the daily chart, the Relative Strength Index (RSI) pair is trending positive, at 58 but flattened. Simultaneously, the Moving Average Convergence Divergence (MACD) reveals red bars, hinting at a steady selling pressure.
EUR/JPY daily chart
Taking into account the hourly chart, the latest RSI value is just above the middle ground at 53, also with a flat slope. This signifies neutrality within the market. Meanwhile, the MACD decreasing green bars, signaling a potential slowdown in the upward pressure.
EUR/JPY hourly chart
In light of the recent market conditions, the EUR/JPY lies above its 20,100, and 200-day SMA, depicting a sturdy ascending pattern in its broader outlook. It suggests the pair have shown resilience in maintaining the bullish momentum both from a short-term and long-term perspective. On Friday, the cross held onto the 20-day SMA at 164.00, suggesting that the bulls remain resilient. Essentially, if the pair continues to stay above the SMA's, it could extend its upward trajectory, enhancing its technical stance in the forthcoming sessions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops back below 1.0750 on renewed US Dollar buying
EUR/USD is falling back below 1.0750 in the European session on Tuesday. A tepid risk sentiment fuels fresh demand for the safe-haven US Dollar, dragging the pair lower. Dovish ECB-speak and EU political jitters continue to undermine the pair.
GBP/USD keeps range above 1.2700 after UK jobs data
GBP/USD retreats from session highs but manages to hold above 1.2700 in the European session on Tuesday. The data from the UK showed the Employment Change in the three months to April was -140,000, making it hard for Pound Sterling to gather strength.
Gold price remains on the defensive amid renewed rate jitters, US Dollar demand
Gold price edges lower, pressured by reduced Fed rate cut bets. Political uncertainty in Europe and geopolitical risks should limit the downside. Traders also seem hesitant ahead of the US CPI and FOMC decision on Wednesday.
Is Ethereum price forming a local top?
Ethereum price faces struggles to surpass the $4,000 barrier. On-chain data reveals that investors appear to be capitalizing on gains, contributing to the emergence of a potential local peak.
Fed meeting, inflation report, Apple conference highlight busy week
Wednesday will be an interesting day for the markets and could result in some volatility, depending on how things go. The U.S. Commerce Department is due to release the May reading for the CPI.