FxWirePro- EURJPY Trade Idea

EUR/JPY pared some of its gains on the weak Euro.  It hit an intraday low of 163.05 and is currently trading around 163.25.  Intraday outlook is bearish as long as the resistance 164.25 holds.

With 2.0% year-on-year, the Euro Area Consumer Price Index (CPI) flash estimate for May 2025 shows a drop from 2.2% in April, therefore suggesting a continuing cooling of headline inflation and getting nearer to the European Central Bank's 2% objective. However, the Core CPI, which excludes volatile items like energy and food, remained steady at 2.7% year-on-year, unchanged from April, suggesting that underlying price pressures within the euro area economy persist despite the slowdown in the overall inflation rate.

Technical Analysis:

The EUR/JPY pair is trading above    55 EMA,    200 and  365-H EMA  on the 1-hour  chart.

• Near-Term Resistance: Around 163.30  a breakout here could lead to targets at 163.85/164.30/165/166/166.65/167.
   
• Immediate Support: At 162.75 if breached, the pair could fall to  162/161.49/160.50/160/  159.25/158.85/158.25.
  
  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 163.28-30 with a stop loss at 164.20 for a TP of 160.