The deck because risk-on sentiment that is still continuing to shine in the financial markets at this point has resulted in the safe-haven Yen currency continuing to lose in this week’s trading session.
The Yen continues to be pushed back to its lowest level since April 2019 and indirectly it has given the Euro an opportunity to expand its dominance.
On the price chart of the EUR/JPY pair, the price movement continued to present stylish action to reach back to the record set at the end of June trading.
The surge exhibited at the opening of the Asian session today (Friday) and continued into the European session has seen prices continue to drive higher to re-test the 132,000-132,400 resistance zone.
As of 2 weeks of trading, the price movement has jumped above 400 pips and continues to trade above the Moving Average 50 (MA50) barrier level on the 1 hour time frame to remain bullish.
If the Yen continues to be ‘slaughtered’ weakly, it is not impossible that the price on EUR/JPY will be able to head to the highest resistance zone over 2 years reached at the beginning of June trading around 134,000.
A higher rise beyond the resistance zone will see the price continue to perform with encouraging action and further record the latest record high for a period of 40 months.
But if the price movement returns to show a declining trend, analysts expect the price to be able to retest the RBS (resistance become support) zone of 132.000.
The lower price decline will again see the price movement test the next RBS zone at 131.000 and it is likely that the price will give an early signal of a trend change.
