The EUR/JPY pair is currently trading at 168.11, showing a strong bullish trend with a 0.38% gain on Tuesday. Despite some losses on Monday, buyers are still in control as indicators on the daily chart are near overbought levels. However, bears are lurking in the background, waiting for an opportunity to strike.
On the daily chart, the Relative Strength Index (RSI) is just below 70, and the Moving Average Convergence Divergence (MACD) histogram remains in a stable green zone, indicating positive momentum. The RSI is firmly in positive territory, along with a flat green MACD, suggesting that buyers are dominating the market. However, the near overbought signal hints at potential consolidation or a pullback in the near future.
Looking at the hourly chart, the RSI fluctuates within a positive range, while the MACD shows decreasing green bars, indicating mild fluctuations but overall favoring buyers. Although there is bullish sentiment on both the daily and hourly charts, minor retractions may be possible in the short term.
In terms of broader outlook, the EUR/JPY is trading above the 20-day and 200-day Simple Moving Averages (SMA), signaling bullish control not only in the short term but also in the medium and long term.
Overall, the EUR/JPY pair is currently showing a strong bullish trend, with buyers in control despite some potential retracements in the near future.