There are indications of a change in market sentiment if analysts assess the price movement on the EUR/JPY currency pair chart for this week.
The price has shown an increase since the beginning of the week from the lowest level the price reached last Monday around 124,500 which is a price support.
The rise shows that the Yen is starting to lose momentum again in the market after a few weeks before strengthening supported by risky market sentiment in the wake of the ongoing Russia-Ukraine war crisis.
Still, investors remained wary of Euro trading despite showing gains against the Yen ahead of the outcome of the European central bank (ECB) meeting on Thursday that could put further pressure on the Euro if the ECB continues to deliver dovish -tone statements on monetary policy.
The rally on the EUR/JPY chart has passed the Moving Average 50 (MA50) barrier level in the 1 -hour time frame of the price movement signaling that the bearish trend that has continued for several weeks may be over.
Continuing trading today (Wednesday), the price started rising from the level of 126.00 at the opening of the Asian session but the price movement slowed and hovered around 126.500 until the beginning of the European session.
The price increase is expected to head to the level of 127.400 to test the latest SBR (support become resistance) zone after last week's decline managed to break that level.
For higher upside projections, the 128.00 to 128,500 levels become among the focus zones for investors to assess price reactions for further movement indicators.
On the other hand, if market sentiment increases risk and re -increases the pull against the Yen, the price is likely to resume last week’s decline.
The support zone at 124,500 will be tested again after the decline at the beginning of the week failed to penetrate the zone.
The lower decline is expected to head around the 123.00 level while recording the latest 16 -week low.
