Despite the negative territory of the daily MACD, buying momentum in the EURJPY market continues to strengthen. The hourly RSI and MACD suggest a temporary balance between buyers and sellers, leading to a consolidation phase. Sellers have failed to consolidate below the 20-day SMA, favoring the bulls in the short-term outlook.
On Tuesday, the EURJPY rose by 0.36% to 166.35, securing a position above the key 20-day SMA, indicating the prevailing power of the bulls. The daily RSI shows a positive trend, with a recovery from below 50 to 59, forming a mildly bullish picture. The MACD also indicates weak selling traction with falling red bars on the daily chart.
On the hourly chart, the RSI fluctuates in the positive domain with a reading of 59, suggesting a balance between buyers and sellers. The MACD histogram remains flat with red bars, highlighting the lack of strong momentum on either side.
Overall, EURJPY maintains a strong bullish posture, ascending above its 20-day SMA and standing above the 100 and 200-day SMAs. While the daily RSI shows strength among buyers, the hourly RSI and MACD indicate a current consolidation phase. However, the positioning of SMAs suggests a strong bullish momentum in the short-to-long-term scenario. If buyers secure the 20-day SMA, the cross may retest cycle highs above 171.00.