FxWirePro- EURJPY trade Idea

The EUR/JPY pared most of its gains as the yen recovered. It hit an intraday low of 159.72 and is currently trading around 159.92. The intraday outlook is bearish as long as the resistance 162 holds.

On January 16, 2025, the European Central Bank (ECB) released its meeting minutes, which revealed that it lowered its key interest rate by 25 basis points to 3.00% to aid the struggling eurozone economy. Policymakers are divided about future rate cuts, with some wanting larger cuts and others warning it could signal panic. The ECB said the eurozone will take longer to recover than estimated, and geopolitics adds complexity to the matter. Their policies will be directed by data in the future instead of being preplanned. The next ECB conference is on January 30, 2025, when it will deliberate again on monetary policy.

Technical Analysis:

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

• Near-Term Resistance: Around 160.60 a breakout here could lead to targets at 161/162/163/164/165/166.65/167.
   
• Immediate Support: At 159.70– if breached, the pair could fall to 158.80/157.76.
  
  Indicator Analysis (4-hour chart):
• CCI (50): Bearish
   
• Average Directional Movement Index: Bearish

Overall, the indicators suggest a mixed trend.

Trading Recommendation:

It is good to sell on rallies around 160.48-50 with a stop loss at 161.10 for a TP of  157.75.