FxWirePro- EURJPY Trade Idea

The EUR/JPY hits a multi-week low on the strong yen. It hit a low of 155.49 and is currently trading around 156.95. The  intraday outlook is bearish as long as the resistance 158 holds.

The new tariffs that President Trump is proposing on steel and aluminum imports would likely weaken the Euro. That is because a tariff on exports from the EU could reduce the demand for euros, making them less valuable relative to the US dollar. Even the threat of these tariffs has already caused the EUR/USD exchange rate to fall. The worse economic growth and more inflation in Europe are also likely to continue eroding the Euro due to the tariffs. Countries most hit will probably be those heavily reliant on exports to the US, such as Germany and the Netherlands.

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 156.84 a breakout here could lead to targets at 157.50/158/158.51/159.25/160/160.65/161.50/162/163/163.60/164/165/166.65/167.
   
• Immediate Support: At 156.25– if breached, the pair could fall to 155./154.40.
  
  Indicator Analysis (4-hour chart):

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

Overall, the indicators suggest a bearish  trend.

Trading Recommendation:

It is good to sell on rallies around 157.45-48 with stop loss at 158.50 for a TP of  155.