The Has Solana got a future?EUR/JPY pair currently trades around 159.40, showing modest 0.30% declines in Thursday's session.
Wednesday witnessed a significant 1.30% upward movement, pushing the cross toward the 160.00 psychological level - a peak not seen since December's opening week.
Daily technical indicators present an interesting picture: while the RSI shows stability in bullish territory, the MACD's steady green bars confirm sustained buying interest.
Four-hour charts suggest temporary consolidation after recent gains, though the broader trend remains favorable for buyers.
Thursday's trading session brought mild retracement for the EUR/JPY cross, following its impressive mid-week performance. The daily chart perspective reveals continued dominance by bullish traders, though shorter timeframes indicate potential for near-term consolidation.
Delving deeper into the daily technical landscape, several factors support the current positive bias. The Relative Strength Index maintains its position in optimistic territory, while the MACD histogram's consistent green bars reinforce the notion of buyer control. Particularly noteworthy is the pair's positioning above all key moving averages (20, 100, and 200-day SMAs), which traditionally signals strong underlying momentum despite the current minor pullback.
Shifting focus to the four-hour timeframe, technical readings suggest the possibility of temporary stabilization. While the RSI demonstrates a gradual descent from overbought conditions, it remains comfortably in positive territory. Similarly, the MACD continues displaying green bars, though their flattening appearance hints at potential deceleration in buying pressure. This configuration typically precedes periods of consolidation, though the overall technical backdrop continues favoring upside potential in the medium term.
Market participants will be watching several key levels in upcoming sessions. Immediate support appears around the 159.00 handle, with stronger foundations near 158.50. On the upside, the psychological 160.00 level represents a significant barrier that bulls will need to overcome to extend the current upward trajectory.
Several fundamental factors continue influencing the EUR/JPY dynamics, including divergent monetary policy expectations between the European Central Bank and Bank of Japan. However, the current technical setup suggests traders are primarily focused on momentum factors rather than immediate fundamental developments.
As always in currency markets, traders should remain vigilant for potential shifts in sentiment. While the daily chart maintains its constructive outlook, the four-hour indicators suggest exercising caution with new positions until clearer signals emerge from the current consolidation phase.