EUR/JPY trades weak risk sentiment takes a hit due to on going geopolitical tension in the Middle East. It hit a low of 164.94 yesterday and is currently trading around 165.58. Intraday outlook is bullish as long as the support of 164.50 holds.
Technical Analysis:
The EUR/JPY pair is trading below 55 EMA, above 200 and above 365-H EMA on the 4-hour chart.
- Near-Term Resistance: Around 166 a breakout here could lead to targets at 166.65/167/167.75.
- Immediate Support: At 164.50 if breached, the pair could fall to 163.85/163.50/ 163/162.75/162/161.49/160.50/160/ 159.25/158.85/158.25.
Indicator Analysis 4-hour chart): - CCI (50): Bearish
- Average Directional Movement Index: Neutral
Overall, the indicators suggest a mixed trend
Trading Recommendation:
It is good to buy on dips around 165.48-50 with a stop loss at 164.70 for a TP of 167/168.
