FxWirePro- EURJPY Trade Ideea

The EUR/JPY  is consolidating in a narrow range between 162.47 and 160.76 for past three days. It hits an low of 160.76 yesterday and is currently trading around 161.72. The  intraday outlook is bearish  as long as the resistance 163.35 holds.

Up to now, on April 2, 2025, tensions between the U.S. and the EU have risen regarding trade tensions in anticipation of President Trump's rumored announcement of new tariffs, such as a possible 25% tariff on cars assembled abroad and further tariffs on steel and aluminum. The EU, led by European Commission President Ursula von der Leyen, said that it has a "strong plan" for reprisal, and its retaliation targets about €26 billion ($28 billion) of U.S. goods, including the imposition of tariffs again on goods such as motorcycles and bourbon whiskey. Even though it too is eager to accept a "negotiated solution," though, the EU is set to retaliate with great effort, using means like its anti-coercion instrument. Already those tariffs have harmed European markets, especially among luxury brands and in the car business, as they prepare to absorb anticipated economic harm.

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: Neutral

Overall, the indicators suggest a mixed 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.