The EUR/JPY pair has shown resilience by bouncing back after facing strong resistance around the 165.50 level. Despite a 0.90% downward momentum, the pair remains above key Simple Moving Averages (SMAs), indicating a persistent bullish sentiment. However, there is a possibility of short-term adjustments as bears are gaining momentum.
On the daily chart, the Relative Strength Index (RSI) took a hit but remains in positive territory, suggesting continued buying momentum. The Moving Average Convergence Divergence (MACD) is showing decreasing green bars, indicating a potential shift in favor of the bears.
Looking at the hourly chart, the RSI is in negative territory, signaling possible downward momentum. The MACD histogram also shows rising red bars, confirming increased negative momentum.
Overall, the EUR/JPY pair is above the 20-day SMA and has rebounded strongly after encountering resistance at 165.50, reflecting a positive short-term trend. Furthermore, being above the 100 and 200-day SMAs indicates a bullish long-term outlook. However, caution is advised as bears are still present in the market.