FxWirePro- EURJPY Trade Idea

EUR/JPY pared most of its gains on the strong yen. It hit a low of 161.98  at the time of writing and is now trading around 162.240. The intraday outlook is bearish as long as the resistance of 165.10 holds.

Japan's Finance Minister, Katsunobu Kato, has stressed the importance of closely monitoring foreign exchange market movements due to the rapid decline of the yen against the US dollar. He noted that the yen has reached its lowest point in almost three months and expressed concerns about "one-sided, rapid moves" in the forex markets, signaling the need for greater attention to speculative trading. Kato reassured that the government would take "appropriate steps" to manage excessive currency movements and emphasized the importance of stable currency values that reflect the economy's fundamentals rather than speculative changes.

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

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

Indicator Analysis (4-hour chart)

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

Overall, indicators suggest a bearish trend.

Trading Recommendation

Consider selling on rallies around 162.78-80, with a stop loss at 163.80, aiming for take profit levels at 160.10.