FxWirePro- EURJPY Trade Idea

The EUR/JPY  recovered slightly as yen weakened. It hit 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.

In October 2024, Germany saw a 1.5% drop in factory orders, a change from a 7.2% increase in September, but better than the 2% decline expected. The decrease was influenced by drops in machinery and automotive orders, while areas like basic metals and electronics saw gains. Domestic orders fell sharply by 5.3%, but foreign orders rose slightly, especially from outside the Eurozone. Meanwhile, Eurozone retail sales fell by 0.5%, indicating ongoing challenges in consumer spending and the economy. The weak economic data increased the bets of a rate cut by the ECB.

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

Near-Term Resistance: Around 159.20– a breakout here could lead to targets at 159.70/160.35/161, 161.75, 162, 163, and 164.18.

Immediate Support: At 158.35 – if breached, the pair could fall to 157.55/156.95/156.40/155.51.

Indicator Analysis (4-hour chart):

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

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

Trading Recommendation:
Consider selling on rallies around 159.48-50, with a stop loss at 160.35, targeting take profit levels at 155.