FxWirePro- EURJPY Trade Idea

The EUR/JPY surged more than 300 pips on strong Euro.It hits an intraday high of 162.35 and is currently trading around 162.34. The  intraday outlook is bullish as long as the support of 161.20 holds.

The EU will impose retaliatory tariffs on some 26 billion euros ($28.33 billion) worth of U.S. products from April 2025, including textiles and home appliances, farm produce, and motorbikes, in retaliation against U.S. tariffs on steel and aluminum. The two-stage process is the reimposition of suspended tariffs and the new tariffs, with the EU saying the U.S. tariffs are unjust and detrimental to companies and consumers. Notwithstanding these steps, the EU remains willing to engage in negotiations with the U.S. to put an end to the trade dispute and ease any possible economic strain.

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 162.50 a breakout here could lead to targets at 163/163.60/164/165/166.65/167.
   
• Immediate Support: At 161.55– if breached, the pair could fall to 161/160.65/159.70.
  
  Indicator Analysis 4-hour chart):
• CCI (50): Bullish
• Average Directional Movement Index: Bullish

Overall, the indicators suggest a bullish  trend

Trading Recommendation:

It is good to buy on dips around 161.75-80 with a stop loss at 161 for a TP of 165.