The bullish price trend on the EUR/JPY currency pair chart has ended?
EUR/JPY which is one of the favorite pairs of many traders in the market has displayed a bullish pattern for several weeks until reaching a high of 130.700 at the end of last week.
However, the upward trend failed to continue earlier this week, instead the price displayed a horizontal movement until it continued today (Tuesday).
The Euro will be driven by the outcome of the European central bank meeting on Thursday with interest rates expected to remain unchanged in addition to central bank policy remaining loose.
Meanwhile, market sentiment, which was assessed to recover earlier this week, was seen to have curbed the Yen's further fall as a safe-haven currency.
After the price hit its latest 7 -week high last Friday to 130.700, the price started to decline again and moved flat earlier this week below the 130.500 barrier level.
The Moving Average 50 (MA50) barrier on the 1 -hour time frame on the EUR/JPY chart is also price tested to give a signal of the direction of further movement for investors.
If a price decline occurs, the 130.00 price zone is seen as a support zone for the price that will be tested before investors expect the price to rise again.
The continued lower decline will test the focus zone around 129.300.
If the price manages to resume last week’s uptrend, the high at 130.700 will try to overcome the price before hitting the latest 8 -week high.
The resistance level at the high of 131.00 will be the price target on the rise that was successfully maintained this week.
