Due to a weaker Euro, there was also some weakness in the EUR/JPY currency pair. It bounced back quickly after reaching the 166.70 level, which was once a challenging barrier to cross but is now essentially laying there today. The value surged slightly to 167.04 and is currently trading at approximately 166.85. The short-term outlook for this pair is favorable, provided it stays above 165.95.
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 167.67 a breakout here could lead to targets at 168/170.
- Immediate Support: At 166.60 if breached, the pair could fall to 165.95/165.55/164.50/164.
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 166.78-80 with a stop loss at 165.95 for a TP of 170.
