FxWirepro- EURJPY Trade idea

The EUR/JPY  recovered more than 200 pips as the Euro recovered. It hit an intraday high of 162.13 and is currently trading around 161.97. The intraday outlook is bullish and maintained as long as the support 160 holds.

Speaking at the Spain Investors Day on January 15, 2025, Vice-President Luis de Guindos of the European Central Bank (ECB) addressed the audience on the euro area's economic performance. He also stated that, since peaking in late 2022, the inflation rate had declined substantially to a level very close to that of the ECB's target of 2%. De Guindos said that currently, the concerns are not really about high inflation but about how low economic growth is, on account of world trade problems and geopolitical conflicts. It recently reduced the interest rate by 25 basis points, but future decisions are going to be strictly based on what the data portrays. He reinforced the ECB commitment to maintaining inflation stable and sound financial systems.

Technical Analysis:

The EUR/JPY pair is trading above the 34, below 55 EMA and 200-4H EMA in the 4-hour chart.

• Near-Term Resistance: Around 162.25 a breakout here could lead to targets at 163/164/165/166.65/167.
   
• Immediate Support: At 161.50– if breached, the pair could fall to 161.30/160.80/160/158.80/157.76.
  
  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 161.98-162 with a stop loss at 163 for a TP of  160.