Re-Test Level: 163.80-89
The EUR/JPY has been consolidated in a narrow range of 166.07 and 164.89 for past two days. It hit a low of 165.36 at the time of writing and is now trading around 165.76. The intraday outlook is bullish as long as the support level at 163.85 holds.
Recent economic reports show that the European economy is weakening, which is causing the Euro to drop in value compared to the US Dollar.
Technical Analysis
The pair is currently above the 34- and 55 EMA, as well as the 365 Hull moving average on the 4-hour chart.
Near-Term Resistance: Around 166.20. A breakout here could lead to targets of 166.66 and 167.47 (38.2% Fibonacci retracement from 175.41 and 154.40).
Immediate Support: At 164.80. If this level is breached, the pair could drop to 164/163, 162.70, 162, 161.80, 161.20, 160.65, 160, 159, or 158.35.
Indicator Analysis (4-hour chart)
- CCI (50): Bullish
- Average Directional Movement Index: Neutral
Overall, indicators suggest a bullish trend.
Trading Recommendation
Consider buying on dips around 164, with a stop loss at 163, aiming for take profit levels at 165.78 or 167.
