FxWirePro- EURJPY Trade Idea

The EUR/JPY recovered slightly on the weak yen. It hit an intraday high of 161.19 and is currently trading around 161.06. The intraday outlook is bullish as long as the support 160 holds.

In a BBC interview, Deutsche Bundesbank's Joachim Nagel was optimistic that the eurozone would reach the ECB's 2% inflation goal by the end of 2025 but cautioned that Germany could experience a third year of economic decline if US tariffs take effect in full. Nagel condemned US tariff policies as ruinous and endorsed the EU's retaliatory actions. He also termed the change in German budget policy that enables higher borrowing to cover defense and infrastructure, as an unconventional step for unconventional times, to deliver economic security in the context of global trade tensions.

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 161.25 a breakout here could lead to targets at 161.65/162/162.35/163/163.60/164/165/166.65/167
• Immediate Support: At 160.40– if breached, the pair could fall to 159.70/159.25/158.85.
  
  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 buy on dips around 160  with stop loss at 159 for a TP of 163 .