The economic data published in the European session is seen to shape the movement of the Euro with the main focus on the ZEW survey for German economic sentiment.
After a slow move in the Asian session, the Euro was seen gaining momentum to begin strengthening but it was still early for investors to determine a clearer direction.
While safe-haven trades such as the US dollar and the Japanese Yen are still influenced by sentiment that is the main focus of markets such as vaccine issues, US economic stimulus packages, Brexit and the risk of US-China trade relations.
On the price chart of the EUR / JPY pair, price movements are seen flat at the beginning of the week after the price increase was displayed last week.
The resistance zone of 127.000-126.700 has not yet been successfully penetrated during last week's price increase with the high reaching below the 126,700 at the weekend.
Continuing the rise earlier this week, the price moved slowly and dropped below the Moving Average 50 (MA50) barrier level over the 1-hour time frame signaling the initial bearish trend.
A price decline is expected towards the RBS zone (resistance become support) at 125.00 after the previous resistance level has been successfully broken.
Meanwhile, the increase is seen to test the resistance zone 127.00 which has still failed to penetrate since being tested last September.
