The price movement on the options chart of the EUR/JPY currency pair remained excellent continuing the rise on the bullish pattern continued in this week's trading.
The Euro is seen to have managed to maintain its strength against the Yen ahead of the European central bank (ECB) meeting this week.
However, if the outcome of the meeting is not in favor of the Euro, it is likely that a change in the direction of price movements could occur making investors wary.
While the Yen failed to be driven by volatile market sentiment with the focus being on central bank fundamental factors that continued to maintain loose monetary policy in Japan.
Thus, if we look at the price movement on the EUR/JPY chart, after flattening in the 136.500 zone at the end of May, the price began to show an encouraging performance by driving to higher levels since last week.
Continuing on this week’s trading, the price increase has reached around 142.00 and has recorded the highest level for 7 years!
The increase earlier this week was initially seen to have managed to keep the price above the 140.00 zone which was the resistance zone in June 2015 trading.
The price trend remains bullish with the price movement continuing to be supported by the Moving Average 50 (MA50) level on the 1 -hour time frame on the EUR/JPY chart.
The price increase if continued higher is seen to be heading up to the high level of 145.00 to continue to record the latest highs again.
On the other hand if the price starts to move lower below the MA50 level, investors will start to be wary for signals of price trend change.
If the bullish pattern is over, the decline is seen to test the 140.00 focus zone which has the potential to form the latest RBS (resistance become support) zone for the price.
The lower decline will return towards the previous RBS zone at around 137.500-136.600.
