The EUR/JPY recovered slightly as yen weakens. It hits a low of 156.18 and currently trading around 158.15. The bearish intraday outlook is maintained as long as the resistance at 160.35 holds.
Increased demand for the US dollar has been seen due to growing uncertainty about trade tariffs, especially with the possibility of rising tensions under President-elect Donald Trump’s administration.
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.
Near-Term Resistance: Around 158.30– a breakout here could lead to targets at 158.80/159.10/159.70/160.35/161, 161.75, 162, 163, and 164.18.
Immediate Support: At 157.60 – if breached, the pair could fall to 156.95/156.40/155.51.
Indicator Analysis (4-hour chart):
- CCI (50): Bearish
- 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.
