The EUR/JPY trades flat after a minor sell-off. It hit a low of 155.95 and is currently trading around 156.57. The intraday outlook is bearish as long as the resistance of 160.25 holds.
Trump unleashes a trade firestorm, threatening 25% tariffs on EU imports, targeting automobiles, declaring the bloc was formed to "screw" America. He claims the EU unfairly restricts American autos and farm goods while freely taking in European products.
The EU promptly dismissed Trump's claims, highlighting the benefits its unified market offers American businesses. Challenging the premise of an unlevel playing field, the EU promises a "firm and immediate" response, threatening reprisals, on the path to a potential trade war
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 157.50 a breakout here could lead to targets at 158/158.70/160.25/161/161.50/162/163/163.60/164/165/166.65/167.
- Immediate Support: At 155.80– if breached, the pair could fall to 155.49/155/154.40.
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 sell on rallies around 157.50 with a stop loss at 158.20 for a TP of 155.49/155.
