FxWirePro- EURJPY Trade idea

The EUR/JPY  pared some of its gains on the weak Euro. It hit a high of 160.07 yesterday and currently trading around 159.54. The bearish intraday outlook is maintained as long as the resistance at 160.35 holds.

The European Central Bank (ECB) is meeting today, December 12, 2024, and is expected to cut its key interest rate by 0.25 percentage points to 3.00%. This would be the third rate cut this year to help boost borrowing and spending in the struggling eurozone economy. Although inflation is currently at 2.3%, it is mostly under control after peaking in previous years. Many economists believe the ECB may continue lowering rates into 2025 to support economic recovery.

Technical Analysis:
The EUR/JPY pair is trading above the 55 EMA and below 34 EMA as well as the 365 Hull moving average on the 4-hour chart.

1. Near-Term Resistance: Around 160.80– a breakout here could lead to targets at 161, 161.75, 162, 163, and 164.18.
2. Immediate Support: At 159.50 – if breached, the pair could fall to 159/158.35/157.55/156.95/156.40/155.51.

Indicator Analysis (4-hour chart):

1. CCI (50): Neutral
2. Average Directional Movement Index: neutral

Overall, the indicators suggest a mixed trend.

Trading Recommendation:
Consider buy on dips around 160, with a stop loss at 159.50, targeting take profit levels at 161.