- The daily RSI is pointing higher, hovering around 70, but the solid red bars on the MACD indicate final consolidation.
- On the hourly chart, the indicators are neutral and in positive territory.
- The 20-day SMA at 169.00 represents an crucial threshold for sellers.
On Friday’s session, despite the recent downward corrections, the EUR/JPY pair managed to regain its position above 170.00. This indicates a change in the bearish trend seen on Thursday, when the pair hit an intraday low of 169.00.
The daily relative strength index (RSI) has moved and is currently pointing higher near 70, suggesting a possible reversal. However, the MACD continues to print red bars, confirming that the pair is in a consolidation phase with constrained growth. These mixed signals require watching the pair closely to determine whether this indicates modern upward momentum or just a pause in a more pronounced downward correction.
EUR/JPY daily chart
On the hourly chart, the indicators maintain neutrality, occupying positive territory. This could potentially indicate a subtle strengthening of bullish sentiment despite the ongoing consolidation phase.
EUR/JPY hourly chart
Most importantly, the EUR/JPY pair continues to hover above significant SMAs. In particular, the 20-day SMA at 169.00 stands out as a key break point and sellers need to break this level to reverse the near-term bullish outlook. If a trade falls below this key support level, 100- and 200-day SMAs provide further safety barriers for potential sellers.
