InstaForex

August 26, 2021

EUR/JPY Optimistic Investors End This Week's Trading Higher

 The price chart of the EUR/JPY currency pair continued to rise higher in Wednesday's trading yesterday continuing the surge at the beginning of the week.


The rise in prices was seen to be more driven by the depreciation of the safe-haven currency Yen influenced by reports on Japan's central bank policy.


Most recently, Bank of Japan (BOJ) policymakers warned of current economic uncertainty with unclear prospects following the Covid-19 outbreak.


Meanwhile, the Euro currency was seen moving relatively stable this week after the economic sector data published earlier in the week was evaluated well although the reading figures were not very satisfactory.


Investors will focus on the minutes report of the European central bank meeting which will be released at 7.30 pm local time today.


Examining the price movement of the EUR/JPY chart, the price that surged at the beginning of the week was seen flat above the 128,600 level before surging past the 129,000 level in the New York session yesterday.


After reaching this week's high around the 129.500 level, the price eased slightly in the Asian session this morning and saw the 129.300 level become the price support level.



The price increase is expected to return to the 130.00 focus zone after the zone was tested in early August trading.


The continued higher rise is then seen to be to the resistance level of 130.500 to record the latest 1 -month high.


On the other hand if a trend change starts to happen, the decline is expected to re -test the support level of 128,600.


Next, the continued decline will lead to the support zone at 128,000 tested last week, and is the lowest price level reached for the year.