If you look at the price movement on the chart of the EUR/JPY currency pair, the price has been moving horizontally since last week until continuing this week.
The sideways price movement is 'confined' in the range of the zone between the height of 142.300 and 140.500.
Finally, the price managed to escape from the zone when a significant decline occurred yesterday, seeing the Euro currency shrink after the decision of the European central bank (ECB) meeting.
But what is surprising is that the situation is different from the expectations due to the Euro which shrank when the interest rate increase was raised to 50 basis points to 3.00%.
In fact, the ECB has also confirmed another 50 basis points increase will be implemented at the March meeting.
Ironically, the Yen strengthened against the Euro when the Japanese central bank was still signaling to maintain a loose monetary policy.
The price drop on the EUR/JPY chart that continued in today's trading (Friday) was seen hovering around the 140.00 level in the European session.
A movement below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/JPY chart which gives a bearish indication will expect a further decline in price to reach the previous support level around 138.00.
However, if the price succeeds in making a surge again, the price will return to enter the sideway zone before with the resistance at the height of 142.300 needing to be tested to be broken.
A continued move higher will push the price towards the next concentration zone at 142.800 to regain the highs touched in the past 3 weeks' trade.
