Market sentiment is seen heading towards a recovery from previous risks, making the movement of the value of the safe-haven currency begin to decline again especially the US dollar which has exhibited a dismal performance since last week.
The yen was among those showing a depreciation at the market opening earlier in the week on Monday yesterday.
Meanwhile, the currency with an outstanding performance earlier this week was the Euro after getting an injection of hawkish cues by the European central bank (ECB) for expectations of an interest rate hike at the latest policy meeting.
Digesting the following factors gives an indication for the direction of the current price movement on the chart of the EUR/JPY currency pair.
If one examines the chart which is one of the favorites of these investors, the price has shown a rise at the beginning of the week testing the resistance zone at 136.600.
The zone was also tested last week but the price failed to break it before the price decline again.
However, this week, it is likely that the zone will be breached if the price manages to maintain the bullish pattern displayed with the support of current factors.
In addition, the price is also still giving a signal for a bullish movement when it remains above the support level of the Moving Average 50 (MA50) on the 1 -hour time frame on the EUR/JPY chart.
If the bulls manage to pass 136.600, the next resistance target to be tested is at around 138.300, the high zone reached in early May trading.
The continued higher rise is seen heading towards the 140.00 focus zone after the price reached that level in April and recorded the highest level since June 2015.
Meanwhile, if the price shows a bearish pattern again after the 136.600 zone still fails to be broken, the decline is seen to lead to the 133.500 zone to test the support zone.
The lower decline beyond the zone is seen to lead to the focus zone around 131.600 to 130.700.
