EUR/JPY Edges Up: Euro Strength and Lagarde's Digital Push

EURJPY gained slightly as Euro gains sharply.It hits an low of 167.90 yesterday and is currently trading at approximately 168.59 The short-term outlook for this pair is favorable, provided it stays above 167.60 holds.

In remarks delivered on June 23-24, 2025, ECB President Christine Lagarde highlighted the extensive global economic and geopolitical uncertainty, calling on Europe to reinforce its position as a "broken-down" powerhouse. As per her statement, the ECB is expecting inflation to meet its 2% medium-term target, with a moderate but robust economic growth supported by bolstering the labor market, rising real incomes, and better financing conditions. The ECB's unrestricted approach to interest rates was reiterated by Lagarde, who was prepared for policy changes to guarantee inflation. In her speech, she stressed the importance of the European Parliament speeding up legislation for a digital euro, which she believes is vital for Europe's financial autonomy an d competitiveness against private stablecoins, with an expected vote in the Governing Council set for autumn 2025.

Technical Analysis:

The EUR/JPY pair is trading above  55 EMA,  200 and  365-H EMA  on the 4-hour  chart.

1. Near-Term Resistance: Around 169 a breakout here could lead to targets at 170/171/172.
2. Immediate Support: At 168  if breached, the pair could fall  to 167.60 166.50/ 165.95/165.55/164.50/164.
   
   Indicator Analysis 4-hour chart):

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

Overall, the indicators suggest mixed trend

Trading Recommendation:

It is good to buy on dips around 167.60  with stop loss at 166.50 for a TP of 171/172.