EUR/JPY surged sharply as the yen lost strength. It hit an intraday high of 163.58 and is currently trading around 163.52. Intraday outlook is bullish as long as the support 162 holds.
ECB President Christine Lagarde said: 'Due to global economic disintegration and investor concerns over the impact of uncertain US policy, we believe that the euro has many potential strengths as an alternative to its historical value and therefore cannot be replaced by the US dollar.
Technical Analysis:
The EUR/JPY pair is trading above 55 EMA, 200 and 365-H EMA on the 4-hour chart.
- Near-Term Resistance: Around 163.70 a breakout here could lead to targets at 164.20/165/166/166.65/167.
- Immediate Support: At 163 if breached, the pair could fall to 162.75/162/161.49/160.50/160/ 159.25/158.85/158.25.
Indicator Analysis 4-hour chart):
- CCI (50): Bullish
- Average Directional Movement Index: Neutral
Overall, the indicators suggest a mixed trend
Trading Recommendation:
It is good to buy on dips around 163.18-20 with a stop loss at 162.60 for a TP of 165.
