EUR/JPY Price Analysis: Buyers maintain stronghold, impending overbought conditions signal possible downturn

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EUR/JPY Price Analysis: Buyers maintain stronghold, impending overbought conditions signal possible downturn
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In Tuesday's session, the EUR/JPY pair is trading around the 164.00 region, marking a strong rally of 1.14%.

The EUR/JPY rallied in Tuesday’s session, seeing more than 1% gains. The daily RSI reveals growing buying momentum, deep in positive territory. The hourly chart hints at overbought conditions, and the RSI staying above 70 signals the potential for profit-taking sell-offs. In Tuesday's session, the EUR/JPY pair is trading around the 164.00 region, marking a strong rally of 1.14%.

The Moving Average Convergence Divergence reinforces this bullish momentum with its rising green bars. However, these overbought conditions might soon provoke a downward correction as overbuying could lead to profit-taking sell-offs. EUR/JPY hourly chart Conclusively, both the daily and hourly charts indicate robust buying momentum. The positive outlook is further corroborated by the pair trading above the main Simple Moving Averages of 20, 100, and 200 days.

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