The European session today saw Euro trading rise to move stronger against the Japanese Yen after a series of bearish days on the EUR / JPY pair chart.
Despite showing improvement, analysts still see the Euro continuing to experience a more severe fall for the week with pressure on the economy.
There was news that put pressure on the Euro yesterday when German Chancellor Angela Merkel stated her proposal for the implementation of a lockdown order in Germany to curb the spread of viral infections.
In addition, German Health Minister Jens Spahn in a recent report stated that it was unlikely that all sanctions would be lifted in February.
This shows that Germany as Europe's largest economy will continue to tighten movement restrictions until March and April and this will also affect GDP growth in the first quarter of 2021.
On the EUR / JPY pair price chart, the price continuing the decline in the Asian session from the level of 126,700 to the level of 126,450 began to show a reversal in the European session.
However, the price increase is seen to test the level of 126,700 in the SBR zone (support become resistance) and also the Moving Average 50 (MA50) barrier in the 1 hour time frame of price movement.
If the zone fails to break through, then a lower price drop is expected towards the price support zone around the 126,100 level.
If the price manages to soar and signals a bullish trend, the SBR level of 127.00 will be tested before the price leads to the resistance level of 127,500 which failed to break last week.
