The price movement pattern is starting to change on the chart of the EUR/JPY currency pair this week which shows a return to the decline.
With the release of European economic data published yesterday, increasing pressure on the Euro.
Germany's factory orders data as well as European retail sales data published dismal for April are seen disrupting the performance of the Euro to remain strong after a slight recovery at the end of last week's trade.
The uncertainty of movement for these two currencies will continue in the following week in the face of the results of the meeting of the two central banks, the European Central Bank (ECB) and the Bank of Japan (BOJ).
Examining the price movement in the past week, the rise has managed to reach the 150.00 zone on Friday, which is seen as a price-tested resistance zone.
However, at the beginning of this week the price started to decline again after failing to break through the resistance and until today, the price has dropped to around 148,700.
Investors have been assessing signals for bearish price movement on Tuesday yesterday after prices started to move below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/JPY chart.
The decline is seen to continue towards the 148.300 level and if it breaks through lower, the next price target is the 146.500 zone.
If observed, the zone was a support for trading in March and April last which prevented the price from falling lower.
Meanwhile, if the price shows a change by making another increase, the price will go back to the 150.00 resistance zone after the MA50 barrier is broken.
With a bullish signal, the price will continue to rise higher to reach the target height of 151.00 reached at the end of May.
