Fulfilling the analysts' forecast on the price movement on the chart of the EUR/JPY currency pair yesterday when the price dropped to the support zone of 128.00 after failing to pass the resistance at the 128.600 zone tested.
The yen showed its depreciation in the Asian session this morning (Wednesday) continuing into the European session after the outcome of the Japanese central bank’s monetary policy meeting was focused.
As for Euro trading, investors will pay close attention to the release of data on European-focused economic sectors on Thursday.
The Bank of Japan (BOJ) kept interest rates unchanged at -0.10% as expected to continue its loose policy in supporting the economy.
The positive outlook by the BOJ on the gradual recovery of the economy from the pandemic as well as the increase in production and exports failed to elicit a positive reaction from investors witnessing a weak movement of the Yen.
Thus, the price increase on the EUR/JPY chart is seen in the Asian session after the price jumped from the support zone of 128.00.
The barrier at the Moving Average 50 (MA50) level on the 1 -hour time frame on the EUR/JPY chart is also valued by investors as a signal for further price movements.
The price increase is seen to retest the 128,600 level in the SBR (support become resistance) zone after yesterday's rise failed to break it.
Passing the SBR zone will give a clearer indication of the change of the bullish trend the next price will target the 130.00 high.
On the other hand, if the price increase is merely a price correction, it is likely that the bearish pattern displayed since last week will continue.
The decline below the 128.00 support zone is expected to lead to the next lower focus level around 127.300.
