The EUR/JPY pair is currently trading slightly higher, indicating a bullish trend. However, caution is advised as there are signs of overbought conditions, which may lead to downward movements in the near future.
On the daily chart, the Relative Strength Index (RSI) shows a positive trend, suggesting that buyers are in control with the possibility of reaching overbought levels. The Moving Average Convergence Divergence (MACD) histogram also supports this view, displaying flat green bars indicating a steady but weakening positive momentum.
Moving to the hourly chart, the RSI has started to decline from high levels towards a negative slope. The MACD histogram also indicates a potential decrease in buying pressure with flat green bars.
Despite the strong performance of the EUR/JPY pair, trading above key Simple Moving Average (SMA) levels, a technical correction may be on the horizon. However, as long as the pair remains above these SMA levels, any movements can be considered as a period of consolidation.