EUR / JPY - Pairs Seen Potential Profits Today

 The safe-haven currency is taking advantage of trading at the moment as market risk sentiment makes investors more cautious.

In addition to fears that US-China relations will escalate after the sale of U.S. firearms to Taiwan, reports of the suspended vaccine clinical trials by Johnson & Johnson also added to the current trade risk.

Asian stock markets opened 'red' with US stock market expectations also affected.

Thus, the US dollar and the Japanese Yen are seen placing themselves in a group of profitable currencies since the New York session yesterday.

Examining the price movement on the EUR / JPY chart, the price has shown a bearish pattern for the third day after last week's bullish series reached the high of 125.00.

The bearish factor was also driven by weak Euro movements following restricted movement restrictions in Europe to curb the Covid-19 pandemic.

At the beginning of this week's trading, the price has dropped below the Moving Average 50 (MA50) barrier over the 1 hour time frame signaling the beginning of a bearish trend.

The decline continued on yesterday's trading past the SBR (support become resistance) zone of 124,300 with a significant price decline following the strengthening of the Yen.

In today's trading session, the decline continued in the Asian session but the price rise was seen to continue at the beginning of the European session.

However, investors are still looking at the EUR / JPY movement towards the lower level towards the RBS zone (resistance become support) 123.100.

A lower drop will test the support zone at 122.500 which failed to break through last September's trade.

European industrial production data, to be published at 5pm local time, will also affect the movement of the Euro.