FxWirePro- EURJPY Trade Idea

The EUR/JPY  pared some of its gains on the weak Euro. It hit a high of 160.07 yesterday and currently trading around 159.22. The bearish intraday outlook is maintained as long as the resistance at 160.35 holds.

The European Central Bank (ECB) is expected to cut interest rates by 25 basis points on December 12, 2024, due to ongoing economic challenges, especially in France. Weak growth and controlled inflation have increased expectations for this rate cut to help stimulate the economy. Additionally, markets are anticipating more cuts in 2025. Political instability in France adds to the uncertainty, complicating the ECB's efforts.

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

1. Near-Term Resistance: Around 160.35– a breakout here could lead to targets at 161, 161.75, 162, 163, and 164.18.
2. Immediate Support: At 159 – if breached, the pair could fall to 158.35/157.55/156.95/156.40/155.51.

Indicator Analysis (4-hour chart):

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

Overall, the indicators suggest a mixed trend.

Trading Recommendation:
Consider selling on rallies around 159.78-80, with a stop loss at 160.35, targeting take profit levels at 155.