FxWirePro- EURJPY Trade Idea

The EUR/JPY  trades with no direction ahead of Trump tariff announcement. It hits an intraday low of 161.25 and is currently trading around 161.55. The  intraday outlook is bearish  as long as the resistance 163.35 holds.

As of April 1, 2025, Eurozone flash figures show a flat Core CPI of 2.6% y/y in March, reversing the expectation of a marginal fall, while headline CPI was up to 2.4% y/y from 2.3% in February. The pickup in headline inflation is thanks to softer energy prices compared to earlier this year. While the company Core CPI indicates strongly contained inflation pressures beneath, the increase in overall CPI might increase unease over future ECB monetary policy. ECB President Christine Lagarde has warned that ongoing trade tensions can affect world growth and drive up the cost of European companies, adding another layer of complication to the inflation story

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 162 a breakout here could lead to targets at 162.60/163/163.36/164.20/165/166.65/167.
   
• Immediate Support: At 161– if breached, the pair could fall to 160.40/ 160.75/59.70/159.25/158.85.
   
  Indicator Analysis 4-hour chart):
• CCI (50): Bearish
   
• Average Directional Movement Index: Bearish

Overall, the indicators suggest a weak trend

Trading Recommendation:

It is good to sell on rallies around 162.48-50 with stop loss at 163.20 for a TP of 160.