EUR/JPY cools off amid dampened market sentiment as EU strikes back at US with retaliatory tariffs.

EUR/JPY slid all the way down to 160.55 level after a week of gains as expectations for rate hike by BOJ weigh down on the pair. Recently, Japanese firms announced substantial wage hike for third consecutive year which would boost consumer spending. Higher consumer spending could result in an uptick in inflation prompting BOJ to increase the key interest rate. 
Simultaneously, EU executive announced retaliatory package aimed at U.S. imports after Trump imposed disruptive tariff measures on European Steel and Aluminium affecting about €26 worth of EU exports. Languishing market sentiment in the middle of a trade war puts pressure on Euro. 
The EUR/JPY formed a doji candle on its daily chart which indicates a trend reversal is possible coupled up with a falling trendline where it faced rejection multiple times. For more bullish momentum, the pair would have to breach 200 Moving Average at 163.00 mark. 

Technical Structure: Doji candle on Daily, Consolidation on 4H, Bearish Flag on 1H. 

Weekly Trend: Uptrend

Intraday Trend/ Intraday Strategy: Neutral/ Buy on Support, Sell on Resistance

Major Support: 159.75, 158.50, 157.10

Major Resistance: 161.30, 162.70, 163.30