EUR/USD, EUR/JPY Range-Bound as Tokyo Markets Mark Christmas Quiet
EUR/USD and EUR/JPY are expected to trade within tight ranges on Christmas Day, with Tokyo being the only major financial market open. EUR/USD is hovering near 1.0400 after trading a 1.0384-1.0410 range on EBS yesterday. Resistance remains firm at the hourly Ichimoku cloud top at 1.0408 and the 55-hour moving average at 1.0410. Similarly, EUR/JPY last traded at 163.31 after ranging between 163.06-163.60 on EBS, with technical support from the hourly Ichimoku kijun at 163.24 and the 55-HMA at 163.16.
Technically, both pairs appear contained by near-term resistance levels, reflecting low market participation and subdued volatility typical of the Christmas holiday. For EUR/USD, a break above the 1.0410 resistance zone could open the door to modest upside gains, but broader momentum remains weak. On the downside, immediate support lies near 1.0384, with further protection at 1.0350. For EUR/JPY, key support levels are clustered around 163.24 and 163.16, while the pair remains capped by the upper bound of its tapering daily Ichimoku cloud at 163.73.
With global markets largely closed and trading volumes expected to remain thin, EUR/USD and EUR/JPY are likely to stay range-bound throughout the Tokyo session. Traders will be monitoring technical levels for signs of a breakout, but meaningful moves are unlikely until liquidity returns post-holiday. As such, holiday-induced stasis is expected to dominate trading conditions.