The change in price direction can be seen on the chart of the EUR/JPY currency pair if compared this week with last week.
Throughout the past week, investors witnessed a pattern of continuous price decline from the beginning of the week on Monday until Thursday, but at the close of trading last week on Friday, the price began to change direction to increase again.
The Euro, which moved against the US dollar, started to show gains when the United States (US) NFP jobs data report last week was published with a disappointing reading for October.
After successfully surging at the end of the week, the Euro maintained the positive pace it continued at the opening of the week yesterday supported by the release of encouraging German industrial production data for September.
Meanwhile, the Yen currency follows the pace of the current market sentiment which is more inclined towards risk-on, but investors remain alert for any uncertainty that could hit when the focus is on the release of US inflation data this Thursday.
In the past week, the price on the EUR/JPY chart has reached the 144.00 support zone, but has managed to bounce back above the 145.00 level.
In fact, the price also broke through the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/JPY chart to signal a change in the bullish trend following the previous price decline that failed to continue.
Yesterday's Monday trading still saw the increase continue higher after the price opening at around 145.700 to reach a height of around 147.00 at the end of the New York session.
Despite continuing a more flat movement today (Tuesday) until the European session, the market sees a tendency for prices to continue rising higher.
However, there is an obstacle at the 147,700 zone that the price has to face before the next high of 148,300 which is seen to be tested.
A move higher then has the potential to reach up to 150.00 if the bullish trend movement is sustained.
On the other hand, if the price changes and the price drops again, the 145.00 level will be targeted again with the expectation that the MA50 support level will also be exceeded.
The support zone at 144.00 will return to be a target to be tested after several times the zone successfully rebounded the price before.
