Eurjpy Trades High

 Eurjpy Trades High

Eur/Jpy Trades Near 164.00 As Bulls Maintain Control

The EUR/JPY pair is seen trading near the 164.24 handle with a +0.16% gain for the day. The technical outlook of EUR/JPY hints at steady bullish momentum as the buyers remain in control.

However, the hourly chart of the EUR/JPY shows signs of exhaustion, which means a reversal could happen in the short term.

Eur/Jpy - Rsi Hovers Near 60 Level

On the EUR/JPY daily chart, the RSI is hovering near the 60 level, which is a sign of positive momentum. Additionally, the slope of RSI is positive, which indicates the buyer's dominance.

And if we look at the MACD indicator, it shows that the red bars continue to shrink, which is a sign of weak bearish momentum.

On the hourly chart of EUR/JPY, the indicators show losing traction, but bullish dominance remains the key theme. The RSI hovers near the 40 - 60 range, which also paints a similar picture to the higher timeframes. A look at the moving averages shows that EUR/JPY is trading above the 20, 100, and 200 periods.

If we analyze the EUR/JPY from a broader perspective, it appears that investors favor the EUR over the JPY. That's why, as long as the EUR/JPY can stay above the 20 and 100 SMA lines, the long-term trend will continue to favor the bulls.

To conclude, the hourly as well as the daily charts of the EUR/JPY suggest a mixed picture. While the long-term trend continues to favor the EUR, the shorter timeframes go in favor of the sellers.

Either way, we can't ignore the fundamental outlooks of the EUR and JPY as well. In the EU, the ECB is still not convinced that inflation is under their control as many members are even calling for delaying the rate cuts.

In Japan, the historic shift away from negative rates has already happened, and BoJ has reaffirmed its commitment to defend the local currency.

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