FxWirePro- EURJPY Trade Idea

The EUR/JPY is trading weak for a third consecutive week and lost more than 300 pips on board-based Euro weakness. It hit a low of 158.23 and currently trading around 158.74. The bearish intraday outlook is maintained as long as the resistance at 160.35 holds.

Euro Weakness

President-elect Donald Trump's warning to BRICS nations about imposing 100% tariffs if they try to create a new currency raises concerns for the euro and other currencies. Analysts believe that the euro may weaken as tensions grow, especially if BRICS countries reduce their reliance on the U.S. dollar. Increased trade tensions could lead to volatility in the euro's value and affect global markets. Overall, these developments could disrupt international trade and economic stability.

Technical Analysis:
The EUR/JPY pair is trading below the 34 and 55 EMA, as well as the 365 Hull moving average on the 4-hour chart.

1. Near-Term Resistance: Around 158.70– a breakout here could lead to targets at 159.10/159.70/160.35/161, 161.75, 162, 163, and 164.18.
2. Immediate Support: At 157.59 – if breached, the pair could fall to 157.05/155.51.

Indicator Analysis (4-hour chart):

1. CCI (50): Bearish
2. Average Directional Movement Index: Bearish

Overall, the indicators suggest a continuation of the bearish trend.

Trading Recommendation:
Consider selling on rallies around 158.28-30, with a stop loss at 159.10, targeting take profit levels at 155.