The EUR/JPY recovered slightly as the Euro gained slightly. It hit a low of 157.86 at the time of writing and currently trading around 159.15. The bearish intraday outlook is maintained as long as the resistance at 160.35 holds.
The euro has recently started to recover against the U.S. dollar, but this comes amidst various challenges. Political problems in France and economic worries in the Eurozone are influencing the euro's rise. Even though the euro's value went up a little last week, there are still many uncertainties, so market fluctuations are likely to continue as investors deal with these issues in the upcoming weeks.
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): Neutral
- Average Directional Movement Index: Neutral
Overall, the indicators suggest a mixed trend.
Trading Recommendation:
Consider selling on rallies around 159.58-60, with a stop loss at 160.35, targeting take profit levels at 155.
