Created
: 2024.05.03
2024.05.03 03:08
The EUR/JPY pair trades at 164.65, tallying sharp losses on Thursday. Despite the increasing selling pressure, the long-term optimism remains intact, but bears are making their case as they reclaimed the 20-day Simple Moving Average (SMA) which worsened the outlook for the short term.
On the daily chart, the Relative Strength Index (RSI) for EUR/JPY has descended from the overbought readings into negative territory. The data suggests a downward momentum, indicative of a current dominant presence of sellers. At the same time, the Moving Average Convergence Divergence (MACD) histogram recorded fresh red bars which confirms a growing negative momentum.
Moving to the hourly chart, the RSI values are persistently recording low readings, venturing deep into the oversold territory. Here, the hourly MACD aligns with the daily outlook, displaying red bars which points to further negative momentum over the shorter span.
From a broader viewpoint, the EUR/JPY experienced a significant shift, falling below the 20-day Simple Moving Average (SMA). This suggests potential short-term bearishness but as long as the pair maintains positions above the more extended 100 and 200-day SMAs, the overall outlook will be positive.
Created
: 2024.05.03
Last updated
: 2024.05.03
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