FxWirePro- EURJPY Trade Idea

The EUR/JPY  Recovered more than 150 pips from yesterday’s low on weak yen. It hit a high of 163.45 at the time of writing and is currently trading around 163.18.

Intraday bias remains bullish as long as support 161.80 holds. The pair remained within a narrow range of 163.61 and 162 for the past ten days.

The decline in value is mainly due to the difference in interest rates between Japan and the United States. The US Federal Reserve has much higher rates, from 5.25% to 5.50%, while Japan's rates are very low, around 0% to 0.1%.

Technicals-

 The pair is trading above  34- and above 55 EMA and 365 hull moving average in the 4-hour chart.

 The near-term resistance is around 163.60 a breach above targets 163.89/164.64/165/167.37 (61.8% fib retracement level from 175.41 and 154.40) The immediate support is at 162.70, any violation below will drag the pair to 162/161.80/161.20/160.65/160/159/158.35.

 Indicator (4-hour chart)

 CCI (50)- Bullish

 Average directional movement Index - neutral. All indicators confirm a bearish trend.

It is good to buy on dips around 163 with SL around 162 for a TP of 165.