FxWirePro- EURJPY Trade Idea

The EUR/JPY  pared some of its gains on the weak Euro. It hit a high of 162.46 yesterday and currently trading around 161.17. The bearish intraday outlook is maintained as long as the resistance at 162.60 holds.

In a recent speech, Pierre Wunsch from the European Central Bank (ECB) expressed that he is comfortable with the idea of making four more quarter-point rate cuts to help deal with current economic challenges. He believes this approach aligns well with the ECB's assessment of the economy and aims for a neutral interest rate of around 2%. Wunsch noted that market expectations for these cuts match the ECB's views but warned that they might change as borrowing costs approach neutral levels. He is not worried about inflation falling significantly below the ECB's target and believes wage increases are helping consumer spending. Overall, he showed cautious optimism about the eurozone's economic recovery while emphasizing the need for careful adjustments in monetary policy.

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 162.60– a breakout here could lead to targets at 163 and 164.18.
   
• Immediate Support: At 160.70 – if breached, the pair could fall to 160/159/158.60/158.
  
  Indicator Analysis (4-hour chart):
• CCI (50): Bullish
• Average Directional Movement Index: Neutral

Overall, the indicators suggest a mixed trend.

Trading Recommendation:
Consider buying on dips around 161, with a stop loss at 160, targeting take profit levels at 163.