Bulls fail to consolidate above the 20-day SMA

• EUR/JPY soared to a high of 158.23, above the 20-day SMA and then closed at 157.85.
• The bulls seem to have no more gas left in the tank to continue advancing.

In Tuesday’s session, the EUR/JPY cross failed to maintain its momentum, which took the pair to a high of 157.85, above the 20-day Simple Moving Average (SMA) and closed with mild gains at 157.85.

Based on the daily chart, the EUR/JPY continues to show indications of bullish exhaustion, leading to a neutral to bearish technical outlook. The Relative Strength Index (RSI) shows a flat slope over its midline and suggests that the bullish momentum is slowly fading away. This is supported by the Moving Average Convergence (MACD), which lays out flat red bars. It’s worth mentioning that the RSI has displayed a downward trend since the beginning of September and lines with the pair being constantly rejected by the 20-day SMA.

That being said, the pair is above the 100 and 200-day SMAs, highlighting the continued dominance of bulls in the broader perspective.

Support levels: 157.00, 155.00, 154.60 (100-day SMA).
Resistance levels: 158.00 (20-day SMA), 158.50, 159.00.

EUR/JPY Daily Chart