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- The daily RSI is pointing higher, hovering around 70, but the continuation of the red bars in the MACD shows excessive consolidation.
- The indicators on the hourly chart appear neutral and in the positive zone.
- The 20-day simple moving average at 169.00 is an important threshold for sellers.
In Friday’s trading session, despite the recent downward corrections, the EUR/JPY pair managed to regain its position above 170.00. This indicates a shift in the bearish momentum observed on Thursday when the pair recorded a daily low at 169.00.
The daily Relative Strength Index (RSI) has pivoted and is now pointing higher near the 70 level, indicating a possible reversal. However, the MACD is still printing red bars, which confirms that the pair is in a consolidation phase with a limited upside trend. These conflicting signals require closely monitoring the pair to determine whether this represents new upward momentum or just a pause in a more pronounced downward correction.
Daily chart of the EUR/JPY pair
On the hourly chart, the indicators remain neutral and reside in the positive zone. This may indicate a slight strengthening of bullish sentiment despite the ongoing consolidation phase.
EUR/JPY hourly chart
It is crucial that the EUR/JPY position continues to hover above the important Simple Moving Averages (SMAs). The 20-day simple moving average at 169.00 in particular stands out as a crucial threshold and sellers must overcome this level to reverse the near-term bullish outlook. If the position falls below this key support level, the 100 and 200 day simple moving averages provide further safety barriers for potential sellers.
