Candlestick pattern- Hammer pattern
The EUR/JPY jumped slightly after a massive sell-off. It hits an intraday low of 154.79 and is currently trading around 156.55. The intraday outlook is bullish as long as the support 155 holds.
German retail sales recorded a modest January 2025 rebound, rising 0.2% month-on-month and ahead of expectations of stagnation. This modest improvement follows a source of concern with a 1.6% decline in December, providing some sign of stability. Annual numbers, however, give a somewhat mixed view, with reports ranging from a more muted 0.2% rise to a more robust 2.9% growth. Whereas the month-on-month growth bettered forecasts, the year-to-year growth is a mixed tale relative to prior estimates. Aggregated, figures indicate a muted recovery towards stability for German retail but further clarity is required to attain a full appreciation
Technical Analysis:
The EUR/JPY pair is trading below the 34,55 EMA and 200-4H EMA in the 8-hour chart.
- Near-Term Resistance: Around 156.80 a breakout here could lead to targets at 158/158.70/160.25/161/161.50/162/163/163.60/164/165/166.65/167.
- Immediate Support: At 155.80– if breached, the pair could fall to 155.49/155/154.40.
Indicator Analysis (8-hour chart): - CCI (50): Bearish
- Average Directional Movement Index: bearish
Overall, the indicators suggest a bearish trend
Trading Recommendation:
It is good to buy on dips around 156.25-30 with a stop loss at 155.80 for a TP of 158.
