The EUR/JPY trades weak on strong yen. It hit an intraday low of 159.12 and is currently trading around 159.215. The intraday outlook is bearish as long as the resistance 161.60 holds.
In January 2025, real wages in Japan dropped by 1.8% year over year, their first fall in three months, when a 4.7% increase in the consumer price index, buoyed by prices of gasoline and foods, was ahead of the 2.8% nominal wage growth even as the latter had been ahead for 37 months. With unions calling for large wage increases in spring wage negotiations each year to stay ahead of inflation, the Bank of Japan is closely monitoring wage growth for indications of monetary policy shifts, as the decline in real wages imperils consumer consumption and overall economic momentum
The Eurozone Sentix indicator rose from -12.7 in February to -2.9 in March, the strongest since June 2024, on the strength of strong optimism regarding future economic conditions, in particular in Germany where investors' sentiment improved considerably on expectations of increased investments in armaments and infrastructure. The positive mood has been supporting the euro and differing considerably from a sharp drop in U.S. investor sentiment
Technical Analysis:
The EUR/JPY pair is trading above the 34,55 EMA and 200-4H EMA in the 8-hour chart.
- Near-Term Resistance: Around 159.75 a breakout here could lead to targets at 160.40/161/161.50/162/163/163.60/164/165/166.65/167.
- Immediate Support: At 158.50– if breached, the pair could fall to 156.80/156/155.49/155/154.40.
Indicator Analysis 4-hour chart):
- CCI (50): Bullish
- Average Directional Movement Index: Neutral
Overall, the indicators suggest a mixed trend
Trading Recommendation:
It is good to sell on rallies around 159.75-80 with a stop loss at 160.70 for a TP of 158.
