EUR/JPY is currently in a bearish trendEUR/JPY is currently in a bearish trend, with strong selling pressure driving the pair lower. On the daily and 4-hour charts, the price is trading below key resistance levels and moving averages, signaling further downside potential.
The pair recently broke below a key support zone around 161.50, turning it into resistance. The RSI is trending below 50, confirming bearish momentum, while the MACD is below the signal line, supporting further declines. A descending trendline is also capping upside moves.
The next weekly support level is around 159.80, which aligns with a previous demand zone. If the price fails to reclaim 161.50 and rejects lower, it could provide a strong shorting opportunity. A confirmed break below 159.80 would open the door for further declines toward 158.50.
Tariff Trade Between the EU and the USA
Tariffs between the European Union (EU) and the United States have historically been a source of economic tension. These trade duties impact industries such as automobiles, steel, agriculture, and technology.
EU Tariffs on US Goods: The EU imposes tariffs on American products like whiskey, motorcycles, and agricultural goods in response to US trade policies.
US Tariffs on EU Goods: The US has targeted European steel, aluminum, and luxury goods, arguing unfair subsidies and trade imbalances.
Retaliation & Trade Wars: Disputes, such as those involving Airbus vs. Boeing subsidies, have led to retaliatory tariffs, affecting global trade.
Recent Developments: The Biden administration and EU officials have worked on reducing tariffs, but tensions remain, especially in green energy subsidies and technology sectors.
If new tariffs arise, they could impact EUR/JPY indirectly through risk sentiment, potentially strengthening the Japanese Yen (JPY) as a safe-haven asset and increasing EUR downside pressure.
Traders should look for price action signals like bearish engulfing candles or trendline rejections to confirm entry. Stops should be placed above the recent highs for risk management.