EUR/JPY has hit a bottom after a significant drop in recent weeks, showing signs of a potential bullish reversal. The pair formed a Dragonfly Doji candlestick pattern, indicating a possible shift in momentum. A bullish close on Friday could confirm a move higher for the pair.
Technical indicators, such as the Relative Strength Index (RSI), suggest that the pair may continue to rise in the short term. However, the medium-term trend remains bearish, and any recovery is expected to be corrective.
EUR/JPY Daily Chart Overview
If the pair manages to sustain its upward momentum, it may face resistance at the 200-day Simple Moving Average (SMA) before potentially retesting major trendline support. The long-term trend, however, remains uncertain and will depend on the strength of the current recovery.
Analysis:
EUR/JPY has shown promising signs of a bullish reversal, but the overall trend remains bearish. Traders should be cautious of a potential correction and monitor key support levels for further guidance. The next few trading sessions will be crucial in determining the pair’s future direction.