EUR/JPY trades weak as demand for safe-haven assets increases. It hits an intraday low of 161.77 and is currently trading around 162.07. Intraday outlook is bearish as long as the resistance 165 holds.
The German Ifo Business Climate Index for May 2025 exceeded expectations, rising to 87.5 from 86.9 in April, driven by increased optimism in business expectations, which rose to 88.9. While the assessment of current business conditions slightly declined, the overall improvement to an eleven-month high suggests a gradual stabilization of the German economy, as noted by Ifo president Clemens Fuest.
Technical Analysis:
The EUR/JPY pair is trading below 55 EMA, 200, and 365-H EMA on the 4-hour chart.
- Near-Term Resistance: Around 162.20 a breakout here could lead to targets at 162.60/163.10/163.70/164.20/165/166/166.65/167.
- Immediate Support: At 161.75 if breached, the pair could fall to 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 bearish trend
Trading Recommendation:
It is good to sell on rallies around 162.60-63 with stop loss at 163.10 for a TP of 160.
