The price movement on the EUR / JPY currency pair chart also showed a significant increase in early-week trading with the market reaction to the initial report of the positive development of Covid-19 vaccine production.
The vaccine co-produced by Pfizer and BioNTech claims that the effectiveness level reached 90%, increasing investor confidence in the global economic recovery.
As a result, investors began to relinquish their holdings on safe-haven assets and switch to risky trading that yielded higher returns.
The Japanese yen was significantly affected as a safe-haven currency with a downtrend on display against other major currencies yesterday.
As can be seen on the EUR / JPY chart, the price has jumped to 220 pips reaching the highs at 125.00 after the price passed the resistance level of 123,100.
However, the price dropped again after testing the high level which was also a resistance zone previously tested in last October's trade.
The weak decline in the Asian session this morning is seen again testing the level of 124,300 at the increase shown until the trade that continues to the European session which is also the location of the price focus.
Market sentiment affecting Yen trading will be a driving factor in further price movements on this EUR / JPY chart.
If the price manages to make an increase, the resistance zone of 125,000-125.400 will be tested before the price is likely to continue rising to a higher level.
However, if the price drops lower, the previous resistance level of 123,100 will be re-tested.
A price drop below the Moving Average 50 (MA50) support level on the 1 hour price movement will also signal the beginning of a bearish trend change.
