Ella 
The EUR/JPY bulls appeared to take profits on Wednesday, as the pair initially fell to a low of 157.70 before settling at 157.86, holding above the key 20-day simple moving average. On the other hand, technical indicators suggest a neutral to bullish outlook for the EUR/JPY, which has been trading sideways since early September, as the bulls need to build momentum.
The daily chart’s Relative Strength Indicator shows a bearish bias and remains above its mid-lines, while the MACD indicator is showing a decline in green bars, indicating that the bulls are trying to build momentum. The 4-hour chart shows that the RSI has dropped into negative territory. Meanwhile, the MACD indicator is showing a flattened red bar, indicating that there is no strong bullish momentum in the shorter time frames, and the EUR/JPY pair is likely to stay on track as traders wait for new fundamental catalysts to determine its short-term direction. Monday’s and Tuesday’s gains will be consolidated in the coming session. The daily chart shows the EUR/JPY trading above its 20, 100, and 200-day simple moving averages, indicating that the bulls are in the driver’s seat within the larger cycle.
