Although subdued by the dominance of the US dollar, the Euro currency still traded strongly against the Japanese Yen.
This is because the Euro was also supported by the results of the European Central Bank (ECB) policy meeting yesterday which saw interest rates increase by 50 basis points.
The ECB also surprised the market when it signaled the implementation of quantitative tightening with an expected reduction in asset purchases by an average of €15 billion per month, until the end of the second quarter of 2023.
In fact, due to the still high inflation, the central bank has also signaled that the increase of 50 basis points will continue for several meetings to come.
However, due to the stronger US dollar supported by the 'hawkish' comments by Federal Reserve (Fed) Chairman Jerome Powell at the FOMC meeting, the Euro failed to shine but still managed to move strongly against the Yen currency.
As a safe-haven currency, the Yen traded weakly due to market sentiment which was clarified by the still positive developments in China related to the measures to control the Coronavirus.
Thus, the price chart for the pair of the two currencies, namely EUR/JPY, has shown a surge to the latest high level on Thursday yesterday.
After leveling off at the support level this week around 143.500, the price is seen to have made yesterday's rise past the resistance zone at 145.00.
Indicators for a bullish trend movement have also been assessed after the price started to move above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the EUR/JPY chart.
The rise to the latest high level in the New York session yesterday reached around 146,700 before starting to flatten slowly until trading continued into the Asian session and the beginning of the European session today (Friday).
With the pattern that has been exhibited, the price is expected to continue the climb in the last sessions for this week heading towards around 148.00.
A continuation of the rise would mark the price's latest high for the 8-week trading period.
However, if the price drop happens, it is likely that 145.00 will be the initial focus for the price to test the RBS (resistance become support) zone.
A further drop below the MA50 support level will rekindle expectations for a bearish trend change before the price is expected to decline towards around 143.00.
