Wednesday, November 18, 2020

EUR / JPY's downside on display steals traders' attention

 Coronavirus outbreaks that continue to increase are seen to offset the positive sentiment of the market after the development of vaccine tests.

This factor is also a barrier for commodity trading to continue to solidify on the contrary, giving safe-haven currencies such as the Yen an advantage to trade up even though price movements are seen slowly this week.

The increase in value was not so sharp, but the clearer movement of prices could be seen in comparison to weak currency such as the Euro which was impressed by the economic factors that had been hit.

It can be seen that the price movement on the chart of the EUR / JPY currency pair shows a pattern of price decline with a slow rate.

The price has moved below the barrier level 124,300 where it was tested at the start of the week but prices fell back after touching it.

The overnight price movement also saw the price move below the moving average barrier level 50 (MA50) on the 1 hour frame signaling a bearish trend.

The decline in prices that continues today is likely to lead to a support level of 123,100 on the RBS zone (resistance become support).

However, perpetual price movements depend on market sentiment based on vaccine developments as well as assessments on virus outbreaks.

If market sentiment continues to recover and weakens the safe-haven Yen trading, prices will advance towards the level of 124,300 to test the hurdle face.

Onwards, on higher advances, the 125.00 resistance zone will be the main pedestal of the breeders.