FxWirePro- EURJPY Trade Idea

The EUR/JPY  pared some of its gains on the strong yen. It hit a high of 163.80  yesterday and currently trading around 162.97. The bullish intraday outlook is maintained as long as the support of 159.80 holds.

In a recent interview with the Financial Times, European Central Bank (ECB) President Christine Lagarde emphasized that the ECB is close to declaring that inflation has sustainably returned to its target of 2%. She noted that while overall inflation is at 2.2% and is trending down, challenges remain, especially in the services sector, which has inflation at 3.9%. Lagarde reinforced that the ECB's monetary policy focuses on keeping prices stable and that future changes will depend on the economy. Despite her positive comments, the Euro has not strengthened against the US Dollar, showing ongoing concerns about Europe’s economic conditions. Overall, Lagarde's remarks indicate cautious optimism but highlight the challenges the ECB faces.

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 164– a breakout here could lead to targets at 164.20,165 and 166.65.
   
• Immediate Support: At 162.30 – 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 163, with a stop loss at 162.34, targeting take profit levels at 165