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.

During a recent press conference, Bank of Japan Governor Kazuo Ueda discussed the central bank's decision to keep interest rates at 0.25%. He stated that while rates are steady now, future hikes may come if economic conditions and inflation improve. Ueda stressed the importance of wage trends, especially with wage negotiations starting in spring 2025, as rising wages could support sustained inflation. He also mentioned concerns about global economic uncertainty and how it could impact Japan. Following his comments, the market is speculating that a rate increase could happen at the next meeting in January 2025, depending on upcoming economic data.

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 163.30– a breakout here could lead to targets at 163.80,164.20,165 and 166.65.
   
• Immediate Support: At 162.51 – if breached, the pair could fall to 161.80/161/160/159/158.60/158.
  
  Indicator Analysis (4-hour chart):
• CCI (50): Bullish
• Average Directional Movement Index: neutral

Overall, the indicators suggest a mixed trend.

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