The EUR/JPY pair has been showing strong momentum, with gains of 0.55% on Wednesday. Buyers are in control, keeping the pair above key Simple Moving Averages (SMAs) in the short and long term, hinting at a potential upward move. Recent downward movements were likely just corrections, as bears struggled to keep the pair below the 20-day SMA.
On the daily chart, the Relative Strength Index (RSI) indicates a positive trend, with a value of 58 showing buyer dominance. The Moving Average Convergence Divergence (MACD) histogram also shows green bars, signaling a consistent rise in positive momentum.
Looking at the hourly chart, the RSI displays a more volatile picture with values fluctuating but generally positive. The latest reading of 69 suggests near overbought conditions. However, the hourly MACD shows flat red bars, indicating a lack of positive momentum as investors may be taking profits.
Overall, the EUR/JPY is positioned above its SMAs for the 20, 100, and 200-day periods, indicating strong upward momentum in both short and long terms. While technical indicators point to a bullish outlook, the contrast in the hourly MACD with daily trends suggests caution as buyers may ease off before the Asian session, potentially leading to some downside movement.