FxWirPro- EURJPY Trade Idea

The EUR/JPY declined slightly on board-based yen buying. It hit a low of 158.93 and is currently trading around 159.30. The  intraday outlook is bearish as long as the resistance 163 holds.

The European Commission is now prepared to make use of its Anti-Coercion Instrument (ACI), which began on December 27, 2023, to counter economic pressure from other nations. The ACI gives the EU the ability to investigate complaints of economic coercion and to retaliate with such measures as higher tariffs or curbs on trade if necessary. This is an initiative in reaction to growing trade tensions, which are largely related to U.S. tariffs. The ACI will help the EU assert its economic independence and ensure member states work together against external threats. Its success will depend on how quickly and effectively it is applied to real cases of coercion.

Technical Analysis:

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

1. Near-Term Resistance: Around 160 a breakout here could lead to targets at 160.65/161.50/162/163/163.60/164/165/166.65/167
2. Immediate Support: At 158.80– if breached, the pair could fall to 157.76/157.
   
   Indicator Analysis (4-hour chart):

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

Overall, the indicators suggest a mixed  trend.

Trading Recommendation:

It is good to sell on rallies around 161.58-60 with stop loss at 163 for a TP of  157.75.