The price movement on the chart of the EUR/JPY currency pair again showed a decline on Wednesday yesterday after the bullish pattern was displayed last Tuesday above the 130.500 level.
The price moved to a high of around 130.700 yesterday failing to overcome the high reached last week before the price plunged back to hit the support level around 130.200 at the beginning of the European session yesterday.
Risky market sentiment is seen to give the Yen an advantage as a safe-haven currency against the Euro.
The European central bank's monetary policy meeting today will drive the next movement of the Euro with the expectation that policy easing will still be maintained.
The price movement re -moving below the 130.500 level and the Moving Average 50 (MA50) resistance level on the 1 -hour time frame has given an early signal for the bearish trend movement of the price again.
With increasing pressure for the Euro, the price is seen to continue the decline testing the 130.00 support level at the focus zone.
The continued lower decline will lead to the level of around 129.300 which is one of the price support levels in the trade at the end of August.
If the price manages to make a rebound, the resistance at 130.500 will try to break through the price again to return giving an indication to continue the bullish trend like the previous weeks.
The rally is expected to overcome the high reached last week before heading to the 131.00 high to test the latest resistance zone.
