FxWirePro- EURJPY Trade Idea

The EUR/JPY recovered slightly on the weak yen. It hit an intraday high of 161.60 and is currently trading around 161.50. The intraday outlook is bullish as long as the support 160 holds.

The US-EU trade tariff war has intensified, with the U.S. reinstating tariffs on EU imports of steel and aluminum to the tune of about €28 billion. The EU retaliated by putting counter-tariffs on U.S. exports to the tune of €26 billion on products such as bourbon, motorbikes, jeans, and strategically chosen industrial and agricultural products. The tit-for-tat tactic has increased the risk of a trade war that, as then EU Trade Commissioner Cecilia Malmström put it, would harm consumers through higher costs and lost employment. Both signaled an openness to talk, although the current face-off will upset supply chains, drive prices higher, and could deter economic growth on either side of the Atlantic.

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 161.60 a breakout here could lead to targets at 163/163.60/164/165/166.65/167
• Immediate Support: At 160.95– if breached, the pair could fall to 160.40/ 159.70/159.25/158.85.
  
  Indicator Analysis 4-hour chart):
• CCI (50): Bullish
• Average Directional Movement Index: Bullish

Overall, the indicators suggest bullish trend

Trading Recommendation:

It is good to buy on dips around 161  with a stop loss at 160 for a TP of 163.