EUR/JPY:Overbought Conditions and Divergence -Potential Pullback

16 May 2023

EUR/JPY exhibits strong upward momentum as it recovers above the 148.00 level early in the week. However, the current price is encountering resistance at the 61.8% Fibonacci area, where an overlap between overbought conditions and divergence on the RSI suggests a potential pullback in line with the prevailing trend. Should the price surpass the A leg of the potential AB=CD pattern, it could initiate a fresh bullish impulse.