The price increase on the chart of the EUR/JPY currency pair at the beginning of the week yesterday was seen to maintain the rising pattern for 4 consecutive weeks.
Although the Euro currency is not moving at the best performance for the start of 2023, it is moving better than the Yen.
The yen remains gloomy in the absence of a catalyst to support the Japanese currency as investors continue to await the latest indication from the central bank on the direction of their monetary policy.
Last week, the price on the EUR/JPY chart managed to move above the 161,500 level which was previously a resistance zone for the price.
Last week's sustained price increase reached around 163.460 which recorded the highest level for the 12-week trading period.
That record was broken earlier in the week yesterday when the rise continued to a recent high of 163,700.
If this bullish pattern continues, the price will next move towards the 164.00 resistance zone that the price reached in November last year.
The peak was the highest reached by the price since the last time the price was around that in 2008.
Could the continued rally after this break past the 164.00 resistance and continue to set new highs?
Analysts are likely to face difficulty in gauging the expected level of the next price target to reach.
However, investors also need to be alert when the price that is around the peak is at risk of experiencing a sudden plunge.
If the price decline starts to happen, the nearest target zone for the price to go to is around 161.500.
Next, the latest indications on the price reaction will be observed to assess whether the price drop will continue or otherwise.
