The Euro managed to continue its strengthening momentum against the yen which is still moving gloomy with uncertain market sentiment.
However, the European currency investors are certainly affected by concerns following the latest reports regarding the energy crisis between Europe and Russia which is becoming increasingly tense.
In recent reports, Russia has blocked the Druzhba oil pipeline connecting to several central European countries due to transit payment issues. This will continue to increase the anxiety of the European Union (EU) in finding a solution to the energy supply problem due to the factor of dependence on supplies from Russia.
Meanwhile, investors are looking at the potential for additional supplies from Iran after Europe handed over the "final text" to revive the 2015 Iran nuclear deal late next Monday.
The price movement on the EUR/JPY chart certainly stole the attention of investors with the developments in Europe expected to affect prices.
However, prices were observed to move flat since the opening of trading earlier in the week until continuing on Tuesday yesterday after a surge occurred at the end of last week on the release of the US NFP jobs data report.
On Monday, the price was seen flat at the 137.500 level and Tuesday's trade yesterday slightly increased to trade flat around the 138.00 level.
Despite the flat movement, investors are still assessing the price movement in a bullish trend supported by the Moving Average 50 (MA50) support level on the 1-hour time frame on the EUR/JPY chart.
In the event of a price surge, a higher increase is seen to target the high level of 140.00 which became an important resistance zone for the price at the end of July.
A higher rise that managed to pass the 140,000 zone is likely to reach the concentration level around 142.00 to record the latest 3-week high.
On the other hand, if the price makes a decline again below the MA50 support level, some concentration levels such as 137.500 and 136.600 are seen to be tested after the signal of a bearish trend change again.
For a successful drop in price beyond the following levels, expect the price to reach the 133,500 support zone that was reached last week.
