FxWirePro- EURJPY Trade Idea

Re-Test Level: 163.80-89

EUR/JPY pared some of its gains as the yen recovered. It hit a high of 165.04 yesterday g and is now trading around 164.40. The intraday outlook is bearish as long as the resistance of 165.10 holds.

Japan's Finance Minister, Katsunobu Kato, has stressed the government’s commitment to managing large swings in foreign exchange rates. He mentioned that authorities will closely watch currency changes, especially those caused by speculative trading, and expressed concern about drastic market movements. Kato assured that the government will take the right actions to reduce excessive fluctuations. This approach aims to keep currency movements in line with economic fundamentals and protect businesses and households. Overall, his statements highlight a proactive strategy to stabilize the forex market.

Technical Analysis

The pair is currently below the 34- and 55 EMA, as well as the 365 Hull moving average on the 4-hour chart.

Near-Term Resistance: Around 165.10. A breakout here could lead to targets of  165.35/166/166.69..

Immediate Support: At 163.75. If this level is breached, the pair could drop to 163, 162.17, 161.80, 161.20, 160.65, 160, 159, or 158.35.

Indicator Analysis (4-hour chart)

• CCI (50): Neutral
• Average Directional Movement Index: Neutral

Overall, indicators suggest a bearish trend.

Trading Recommendation

Consider selling on rallies around 165, with a stop loss at 166.10, aiming to take profit levels at 160.10.