The EUR/JPY currency pair is exhibiting a strong bullish trend, reaching 167.85 on Friday. This uptick is driven by market buyers, but some potential for short-term pullbacks exists.

Daily Chart Signals Bullish Momentum:

• RSI: The daily RSI has steadily climbed from 44 to 60, indicating ongoing buying pressure.
• MACD: Rising green bars on the MACD further confirm the positive momentum.

Hourly Chart Hints at Potential Pullback:

• RSI Pullback: The hourly RSI has dipped from 67.40 to 53.26, suggesting a slight cooling-off of buying dominance.
• MACD: Rising red bars on the hourly MACD hint at the formation of short-term bearish momentum.

Overall Trend Remains Bullish:

• Despite the hourly chart’s signals, the bigger picture on the daily chart remains bullish.
• The EUR/JPY trades above its 20, 100, and 200-day SMAs, signifying buyer control.

Potential Scenario:

• Short-term pullbacks are possible due to overbought indicators on the hourly chart.
• However, the underlying bullish trend is likely to persist based on the daily chart and the position above key SMAs.

The EUR/JPY is in a strong uptrend, but short-term corrections are a possibility. The daily chart suggests a continuation of the bullish move in the long run.