FxWirePro- EURJPY Trade Idea

EUR/JPY pared some of its gains as the yen recovered. It hit a low of 162.31 yesterday and is now trading around 163.08. The intraday outlook is bearish as long as the resistance of 165.10 holds.

Recent comments from Bank of Japan (BOJ) Governor Kazuo Ueda have impacted the Japanese yen (JPY) and the USD/JPY exchange rate, as he didn’t indicate a possible rate hike in December. This uncertainty has created a negative outlook for the yen, and traders expect the BOJ to maintain its supportive monetary policy for now. The USD/JPY pair has been trading around 155.00, facing resistance as fears of intervention by Japanese authorities linger. These factors are making traders cautious and limiting significant movements in the currency pair. Overall, the yen remains vulnerable while traders watch for new economic signals.

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 164. A breakout here could lead to targets of  165/165.35/166/166.69..

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

Indicator Analysis (4-hour chart)

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

Overall, indicators suggest a bearish trend.

Trading Recommendation

Consider selling on rallies around 164, with a stop loss at 165.10, aiming to take profit levels at 160.10.