The EUR/JPY pair is currently trading at 164.65, experiencing significant losses on Thursday. Despite the selling pressure, long-term optimism remains intact. However, bears have taken control by reclaiming the 20-day Simple Moving Average (SMA), signaling a negative short-term outlook.
On the daily chart, the Relative Strength Index (RSI) for EUR/JPY has dropped from overbought levels to negative territory, indicating a strong presence of sellers. The Moving Average Convergence Divergence (MACD) histogram also shows increasing negative momentum with fresh red bars.
Moving to the hourly chart, the RSI values are consistently low, reaching oversold levels. The MACD on the hourly chart mirrors the daily trend, showing red bars and suggesting further negative momentum in the near term.
Despite the short-term bearishness, as long as the pair remains above the 100 and 200-day SMAs, the overall outlook for EUR/JPY remains positive. This shift below the 20-day SMA indicates a potential short-term bearish trend, but the broader perspective remains optimistic.