The EUR/JPY pair has shown strong buying momentum on the daily chart, with positive RSI and MACD readings. However, the hourly chart suggests a possible correction as indicators show signs of easing off from overbought levels.
In Monday’s session, the pair rose to 168.52, a 0.45% increase. The hourly chart indicates a potential cooling-off phase, which could lead to profit-taking. Investors are keeping an eye out for a retest of cycle highs above 170.00 in future sessions.
On the daily chart, the RSI is in positive territory, indicating a buying bias. The MACD histogram also shows increasing green bars, supporting the bullish outlook.
Moving to the hourly chart, the RSI has been consistently in overbought territory but has shown a slight decrease, suggesting a potential easing off. The MACD is also showing a slowdown in buying activity.
The EUR/JPY remains above key Simple Moving Average (SMA) levels, indicating a potential bullish bias in the short-term. The pair’s proximity to multi-year highs further reinforces the positive outlook.