EURJPY holds below 183 as the yen gains strength. Intraday trend remains bearish as long as the resistance at 184 holds. It hits an intraday low of 182.71 and is currently around 182.914.
While Core CPI Flash Estimate y/y decreased to 2.3% from 2.4%, beating consensus projections of 2.4%, December 2025 Eurozone CPI Flash Estimate y/y recorded 2.0%, down from 2.1% in November and exactly at the ECB's target. While still the main upward driver, services inflation slowed down slightly to 3.4% y/y, countered by a 1.9% y/y drop in energy prices and 2.6% y/y food inflation. Driven by energy disinflation and a stronger euro, this alignment with the 2% objective for the first time since mid-2025 caused a subdued market reaction that steadied the euro and equities without significant volatility, therefore supporting ECB patience on monetary policy changes.
Technical Analysis:
The EUR/JPY pair is trading below 55 EMA, above 200 and 365-H EMA on the 4-hour chart.
- Near-Term Resistance: Around 185, a breakout here could lead to targets at 186/187/188.69.
- Immediate Support: At 182.80, if breached, the pair could fall to 182/181/180.
Indicator Analysis (4-hour chart): - CCI (50): Neutral
- Average Directional Movement Index: Neutral
Overall, the indicators suggest a neutral trend
Trading Recommendation:
It is good to sell on rallies around 183.38-40 with a stop loss at 184 for a TP of 180.
