Despite failing to withstand the pressure of the strengthening US dollar, the Euro managed to perform well against the Yen.
This can be observed through the price movement on the chart of the EUR/JPY currency pair where the price still maintains the bullish pattern on the bullish trend continued this week.
After European inflation data published yesterday featured rising readings, investors are increasingly excited to see the European central bank (ECB) implement an interest rate hike for the first time in more than a decade.
Meanwhile, the Yen is seen as failing to strengthen even in a risky market environment which will normally give an advantage to the safe-haven currency.
This is driven by concerns over the Japanese economy for the time being after the Japanese central bank (BOJ) was seen as failing to raise inflation in balancing its country’s economy. In fact, Japanese employment data published yesterday also failed to inject a strengthening Yen.
Earlier in the week, the price on the EUR/JPY chart managed to drive higher past the 136.600 level which is the price resistance level last week.
The bullish pattern continued in Tuesday’s trading yesterday despite an initial decline in the Asian session.
But the price managed to resume rising until the end of the New York session to the high of 138.200.
Investors are still evaluating the remaining bullish signals on the price chart with the Moving Average 50 (MA50) support level on the 1 -hour time frame supporting the price to continue rising.
Momentum was slower in trading today (Wednesday), but still showed a rise in prices until the beginning of the European session.
The next bullish target is seen heading towards the 140.00 zone to record the latest 6 -week high.
The zone is a price resistance that was tested in mid -April and it is likely that the rise that continues this week will give an interesting reaction to the zone.
Meanwhile, for the expected decline, the zone around 137.500-136.600 is seen to be tested and could be a support zone for the price to rise again.
A drop below 136.600 will give a bearish signal for the price to make the fall lower again.
The target for the long -term decline of the price could reach up to the support zone around 133.500.
