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.

Today, 16th January 2025, the European Central Bank's meeting minutes are to be published at 12:30 GMT. The question on everyone's mind is whether there is anything mentioned about lowering interest rates again. The previous move to 3.00% prompted analysts to anticipate whether future rate cuts would occur. More importantly, it's going to focus on the projections of inflation and how the ECB plans to restore it to 2%. Additional focus will be placed on insights into economic growth as the recovery has been slow. Important movements in the Euro and bond markets are also expected as investors react to plans by the ECB.

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 161.20 a breakout here could lead to targets at 163/164/165/166.65/167.
   
• Immediate Support: At 159.70– if breached, the pair could fall to 158.80/157.76.
  
  Indicator Analysis (4-hour chart):

1. CCI (50): Bearish
2. Average Directional Movement Index: Neutral

Overall, the indicators suggest a mixed  trend.

Trading Recommendation:
It is good to sell on rallies around 161  with a stop loss at 162 for a TP of  158.85.