FxWirePro-EURJPY Trade Idea

The EUR/JPY  trades weak on the strong yen. It hit a low of 161.98 at the time of writing and is currently trading around 162.08.

Intraday bias remains neutral as long as resistance  163.89 holds. The pair remained within a narrow range of 163.61 and 161.83 for the past ten days.

Euro lost its momentum after the less dovish ECB rate cut.ECB President Christine Lagarde emphasized that the bank is not committed to a specific trajectory for future rates and remains cautious, data data-dependent.

Technicals-

 The pair is trading  below  34- and 55 EMA and above 365 hull moving average in the 4-hour chart.

 The near-term resistance is around 162.50, a breach above targets 163/163.60/163.89/164.64/165/167.37 (61.8% fib retracement level from 175.41 and 154.40) The immediate support is at 161.80, any violation below will drag the pair to 161.20/160.65/160/159/158.35.

 Indicator (4-hour chart)

 CCI (50)- Bearish

 Average directional movement Index - Bearish. All indicators confirm a bearish trend.

It is good to buy on dips around 162-162.05 with SL around 161.40 for a TP of 163.60.