EUR/JPY pared most of its gains due to the strong yen. It hit a low of 159.22 at the time o writing and is now trading around 159.46. The intraday outlook is bearish as long as the resistance 163 holds.
Today, the Japanese Yen (JPY) strengthened as investors looked for safe-haven assets due to increasing concerns over U.S. trade policies and geopolitical tensions. The Yen gained popularity as a safe option amid worries about U.S. President-elect Donald Trump's recent tariff threats, which raised fears of potential trade wars affecting the global economy. This demand for the Yen is common during times of market uncertainty, causing it to appreciate against other currencies. Overall, the Yen’s rise reflects the investors' desire for safety amid volatility.
Technical Analysis
The pair is currently below the 34- and 55 EMA, as well as the 365 Hull moving average on the 4-hour chart.
Near-Term Resistance: Around 160. A breakout here could lead to targets of 160.65/161/161.68/162/163/164.18.
Immediate Support: At 159.35. If this level is breached, the pair could drop to 160/ 159, or 158.10.
Indicator Analysis (4-hour chart)
- CCI (50): Bearish
- Average Directional Movement Index: Bearish
Overall, indicators suggest a bearish trend.
Trading Recommendation
Consider selling on rallies around 160.28-30, with a stop loss at 161.10, aiming for take profit levels at 158.15.
