EUR/JPY Price Analysis: Bulls need running out of steam, capped by the 20-day SMA

• EUR/JPY advanced near 158.00, setting a consecutive day of gains.
• Bullish momentum is fading, and indicators signal further downside.
• Bulls are struggling to gain the 20-day SMA.

On Monday, the EUR/JPY cross slightly advanced, near the 157.80 zone. Still, the pair could see further consolidation if the bull fails to reclaim the 20-day Simple Moving Average (SMA) at 158.00.

In line with that, indicators on the daily chart exhibit signs of bullish exhaustion, contributing to a neutral to bearish technical perspective. The Relative Strength Index (RSI), despite seeing a positive slope above its midline, displays a clear downward trend since mid-August, while the Moving Average Convergence (MACD) shows neutral red bars. Additionally, the pair is below the 20-day Simple Moving Average (SMA) but above the 100 and 200-day SMAs, indicating that the bulls still have the upper hand when looking at the broader picture. However, the pair got rejected by the 20-day SMA at 158.00 during September, which contributed to the pair losing momentum and left the door open for further downside.

 Support levels: 157.00, 155.00, 154.60 (100-day SMA)

 Resistance levels: 158.00 (20-day SMA), 158.50, 159.00.

 EUR/JPY Daily Chart