【EUR/USD】1-Hour Chart Analysis - April 25, 2025

EUR/JPY Analysis – Uptrend Gaining Momentum Near 163.00

Overview (as of April 25, 2025 – 13:00)

EUR/JPY has risen to around 162.92 and is now attempting to break the key resistance level at 163.00. Based on technical indicators such as ADX (trend strength), DMI (directional movement index), and moving averages (MA), this analysis forecasts the potential future movement. If the price clearly breaks above 163.00, the uptrend may accelerate further toward the next target zone of 163.20–163.50. Conversely, if the price pulls back, identifying potential buy-the-dip zones will be crucial.

Key Point 1: Continued Uptrend and Support from Moving Averages

The current EUR/JPY trend is clearly bullish in both short- and mid-term perspectives, with candlesticks trading above the 50MA (blue) and 200MA (red). The 50MA in particular is acting as a strong support just below the current price, confirming a technically stable uptrend. A strong rebound from around 162.20 has occurred, with the bullish pressure clearly reflected in the candlestick bodies. If EUR/JPY breaks above 163.00, it may enter a new bullish phase. If the uptrend pauses, the zone between 162.40–162.20 is likely to act as a buy-the-dip opportunity. If this zone is broken downward, the trend momentum may temporarily weaken, so short-term traders should pay close attention.

※Image Source: cTrader platform

Key Point 2: ADX Shows Strengthening Trend Signal

The ADX (yellow line) at the bottom of the chart has risen to the 0.15 range, indicating a clear emerging trend. When ADX surpasses 0.20, it is considered to enter a strong trend phase, and the current reading is just below that threshold. Additionally, the +DI (green) is significantly above the -DI (red), confirming the "upward" direction of the trend. Under these conditions, long entries on dips are an effective strategy. If ADX rises further, the probability of a strong uptrend increases, and a breakout above 163.00 may just be a stepping stone.

Outlook and Trading Strategy

EUR/JPY is currently in a technically bullish setup, and the following points will be key to the next move:
Whether it can break above the 163.00 resistance
Whether it can maintain support in the 162.40–162.20 buy zone
Whether ADX continues rising to confirm trend continuation

Trade Scenarios

Bullish Scenario (Breakout Strategy)
Entry: On breakout of 162.90–163.00
Target: 163.20–163.50
Stop Loss: Below 162.40

Bearish Scenario (Reversal Strategy)
Entry: Below 162.40
Target: 162.00
Stop Loss: Above 163.00

Conclusion:

A trend-following buy-on-dip strategy remains valid. Currently, all indicators—moving averages, ADX, and DMI—point upward, favoring bullish strategies. If EUR/JPY breaks above 163.00, further upside toward the next target zone can be expected. Watch candlestick structure and volume closely moving forward.

Disclaimer:

This article is for informational purposes only and does not constitute a recommendation to buy or sell any specific financial product. All trading decisions should be made at your own discretion.
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