Despite the slow pace, a bearish pattern was seen on the EUR/JPY chart for early trading of the week.
Although retail sales and unemployment rate data in Japan published in today’s Asian session posted a weak reading, the Yen was seen moving better against the Euro.
This is because investors are still seeing a tendency for the Euro currency to continue to depreciate based on dovish indications by the European central bank (ECB).
Most recently, ECB member Robert Holzmann issued a statement that there is still no room for the central bank to raise interest rates in the near term as inflation is still weak.
With the decline of the Euro added further pressure on the price decline to lower levels on the EUR/JPY chart.
If observed on last week’s trade, the upside stagnated in the resistance zone of 132.500 before a horizontal movement then exhibited a continued bearish pattern earlier this week.
Prices that start moving below the Moving Average 50 (MA50) barrier level in the 1 hour time frame of price movement add further signals for a bearish trend.
The decline is expected to continue today (Tuesday) will test the nearest focus zone around 131.500 before reaching the support level of 131,000.
For a continued lower decline, the support zone at 130.00 is seen to be the price target that was also tested at the beginning of last week's trading.
Meanwhile if the price makes a rise again, the 132,500 resistance zone is again tested as last week.
If the zone is successfully broken, the high leih is expected to head to around 133.400 before reaching the resistance zone of 134.200 to record the latest 4 -week high.
