EUR/JPY gained sharply yesterday after the hawkish ECB rate cut. It hit a high of 164.77 yesterday and is currently trading around 164.46. The intraday outlook is bullish as long as the support of 162.75 holds.
Market eyes US NFP data for further direction. Any weak US jobs data will push the Euro further towards the 1.1500 level.
Technical Analysis:
The EUR/JPY pair is trading above 55 EMA, 200, and above 365-H EMA on the 4-hour chart.
- Near-Term Resistance: Around 165 a breakout here could lead to targets at 166/166.65/167.
- Immediate Support: At 163.90 if breached, the pair could fall to 163.50/ 163/162.75/162/161.49/160.50/160/ 159.25/158.85/158.25.
Indicator Analysis 4-hour chart): - CCI (50): Bullish
- Average Directional Movement Index: Bullish
Overall, the indicators suggest bullish trend
Trading Recommendation:
It is good to buy on dips around 164 with a stop loss at 163 for a TP of 166.50.
