FxWirePro- EURJPY Trade Idea

The EUR/JPY  recovered more than 200 pips as the Euro recovered. It hit an intraday high of 162.13 and is currently trading around 161.97. The intraday outlook is bullish and maintained as long as the support 160 holds.

Bloomberg states that the economic advisors of Donald Trump are proposing an increase in tariffs of 2% to 5% each month to increase the momentum of the trade negotiations and avoid shocks in inflation. The members of his team, including the Treasury Secretary nominee Scott Bessent, have discussed this plan but have not yet presented it to Trump. After these talks, the U.S. dollar declined against other currencies, as traders welcomed the gradual approach. While this will keep at bay possible economic shocks, retaliatory action from other nations could result in inflation. For the time being, it serves to level out trade agreements as well as monetary stability in anticipation of Trump's presidency.

Technical Analysis:

The EUR/JPY pair is trading above the 34, below 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 161.70– if breached, the pair could fall to 161.30/160.80/160/158.80/157.76.
  
  Indicator Analysis (4-hour chart):
• CCI (50): Bearish
• Average Directional Movement Index: Neutral

Overall, the indicators suggest a mixed trend.

Trading Recommendation:
It is good to buy on dips around 161.30 with a stop loss at 160 for a TP of  165.