EURJPY pared some of its gains sas yen gains momentum. It hits an high of 169.70 yesterday and is currently trading at approximately 168.09. The short-term outlook for this pair is favorable, provided it stays above 167.60 holds.
The ifo Business Climate Index in Germany for June 2025 increased to 88.4, marking its highest point in a year and surpassing analysts’ forecasts. This improvement is largely attributed to a notable rise in business expectations, which climbed to 90.7. There was also a modest improvement in assessments of current conditions. Collectively, these developments suggest a strengthening sense of confidence within the German economy, particularly in the manufacturing sector.
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 168.50 a breakout here could lead to targets at 169/170/171/172.
- Immediate Support: At 167.60 if breached, the pair could fall to 166.50/ 165.95/165.55/164.50/164.
Indicator Analysis 4-hour chart): - CCI (50): Bullish
- Average Directional Movement Index: Neutral
Overall, the indicators suggest mixed trend
Trading Recommendation:
It is good to buy on dips around 167.60 with stop loss at 166.50 for a TP of 171/172.
