FxWirePro- EURJPY Trade Idea

The EUR/JPY pared most of its gains on the weak Euro. It hit a low of 161.06 and is currently trading around 161.317. The bearish intraday outlook is bearish as long as the resistance  162.25 holds.

 Traders expect the European Central Bank to cut interest rates four times in 2025, with a 25 basis points reduction planned at each meeting until summer. This follows the ECB's recent decision to lower its key interest rate to 3%. The expected rate cuts are due to a weak economic outlook, with growth only projected at 0.7% in 2024 and inflation expected to stabilize around 2%. The ECB will shift to a more accommodative policy with the support of growth and moderation of inflation. Investors are monitoring this change closely because they have a potential impact on market sentiment and currency values.

Technical Analysis:

The EUR/JPY pair is trading below the 34,55 EMA and 200-4H EMA in the 4-hour chart.

• Near-Term Resistance: Around 162.25 a breakout here could lead to targets at 163/164/165/166.65/167
• Immediate Support: At 161 – if breached, the pair could fall to 160.80/160.
  
  Indicator Analysis (4-hour chart):
• CCI (50): Bearish
• Average Directional Movement Index: Bearish

Overall, the indicators suggest a bearish trend.

Trading Recommendation:
It is good to good to sell on rallies around 162 with a stop loss at 163 for a TP of  160.