FxWirePro- EURJPY Trade Idea

The EUR/JPY recovered slightly after board-based Euro strength. It hit an intraday low of 160.95 and is currently trading around 162.05. The intraday outlook is bullish as long as the support of 159.70 holds.

Germany's ZEW Indicator of Economic Sentiment fell to 10.3 points in January 2025 from 15.7 points in December 2024, a decline more dramatic than analysts had forecast. The decline is connected with the recession and inflationary fears after two consecutive years of economic contraction. Weak construction and low private spending remain other sources of pain for recovery. The index measuring current economic conditions slightly increased, to 2.7 points, at -90.4, while still indicating a very negative perspective. The larger eurozone also improved sentiment, to 18.0 points, showing more positive expectations. Experts are largely cautious due to political uncertainties and external economic influences, especially coming from the U.S.

Technical Analysis:

The EUR/JPY pair is trading above the 34,55 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 160.95– if breached, the pair could fall to 159.70/158.80/157.76.
  
  Indicator Analysis (4-hour chart):
• CCI (50): Bearish
   
• Average Directional Movement Index: Bullish

Overall, the indicators suggest a mixed trend.

Trading Recommendation:

It is good to buy on dips around 161.50 with stop loss at 160.80 for a TP of  163.