The EUR/JPY pair showed a slight dip on Friday, trading around the 164.00 mark after the European session. Despite this minor decline, the broader trend remains upward, supported by rising moving averages. Short-term momentum is mixed, but the overall outlook remains positive.

The Relative Strength Index is around neutral at 56, showing balanced momentum without overbought pressure. The Moving Average Convergence Divergence confirms an upward trend with a buy signal. While the Williams Percent Range and Bull Bear Power remain neutral, momentum has slowed but not reversed.

Key Moving Averages

Key moving averages, including the 20-day, 100-day, and 200-day Simple Moving Averages, lie below current levels and slope upward, providing support. The 10-day Exponential and Simple Moving Averages further reinforce the positive stance as the Asian session approaches.

Support is identified at 163.07, 162.94, and 162.87, with resistance at 163.94, 164.00, and 164.10. A push above the immediate resistance could signal a broader breakout, while falling below support may cause a short-term correction without altering the overall trend.

The EUR/JPY pair, after a modest retreat towards the 164.00 level during Friday’s European session, continues to hover in territory that broadly favours buyers. This slight pullback, rather than undermining the trend, appears more like a brief breather in a pattern that still leans upward, with multiple technical indicators still aligned to the upside.

At first glance, the momentum picture isn’t completely one-sided. The Relative Strength Index, sitting near 56, remains squarely in neutral ground, not stretched in either direction. What this tells us is that conditions are steady—neither exhausted nor under pressure. The Moving Average Convergence Divergence, often a clearer pointer of trend continuation, is still flashing a buy signal. That confirms we’re not incorrectly reading the mood.

Assessment of Indicator Alignment

Other indicators—like the Williams Percent Range and Bull Bear Power—aren’t strongly committed to either direction at the moment, which is something we have to watch. They add colour to a picture of slowing short-term momentum, though not a reversal. That distinction matters because it helps filter noise from actionable signals when constructing trades over varying durations.

Now, where the true interest lies is in the alignment of the larger moving averages. The 20-day, 100-day, and 200-day Simple Moving Averages are all sloping upward and remain beneath the current price. That means the broader structure—often referenced to get a sense of sustained strength—is providing a secure base. We also note that the 10-day versions, both the exponential and simple types, have held firm, reinforcing the suggestion that recent weakness lacks intent.

From a structural point of view, there’s a well-defined range of support below at 163.07, 162.94, and 162.87. These levels could serve as reference points for adjusting exposure if weakness extends early in the week. Resistance, meanwhile, comes in at 163.94 through to 164.10. A break above this immediate ceiling would begin to carve out space for another leg higher, possibly drawing renewed directional flow.

It’s worth noting that prices have consolidated around these thresholds without a committed close on either side. This stasis is often followed by a more impulsive move, and traders could consider taking reduced-size positions ahead of such a development, tightening stops gradually rather than chasing the first impulse.

As momentum builds towards the Asian sessions ahead, the focus will likely remain on how the price reacts around current resistance. If it’s absorbed without rejection, there’s room for extension. However, if buying wanes near those upper boundaries, we might have to deal with a short period of retracement.

With large moving averages supporting from below and no clear exhaustion in long trades, the pullback should not yet be seen as a trend-ending event. While things aren’t moving in strong bursts, the structure is intact, giving room to cautiously participate in trend continuation strategies. If entering, it makes sense to stagger orders around minor support and keep an eye on momentum through levels that are already mapped. The technicals indicate patience could be rewarded, but only if entries are well-positioned and risk is clearly defined.

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