October 1, 2021

End of Bullish Pattern, EUR/JPY Shows Decline For 3rd Day

Risky market sentiment is seen again engulfing the financial markets this weekend after the close of trading for September yesterday.

While not very supportive of a significant strengthening for the US dollar, other safe-haven currencies such as the Yen and Swiss franc have taken advantage of opportunities to rise.

The price chart of the EUR/JPY currency pair on Thursday yesterday showed a daily decline of around 100 pips with an advantage in favor of the Yen against the Euro.

The previous day's trading on Wednesday had already given an early signal for a change in the bearish trend after the price dropped below the 130.00 level and moved below the Moving Average 50 (MA50) barrier level again.

Failing to break the 130.00 resistance on yesterday's rise, the price slipped lower towards the RBS (resistance become support) zone of 128.600 continuing in today's (Friday) trading.

Several readings of European economic data this afternoon will also be in focus and could likely have an impact on the movement of the Euro currency.

If the decline continues below the RBS 128,600 zone, the support zone at 128.00 will return to the price focus again after being tested in last week’s trading.

Investors would like to see if the support zone can once again support the upside on the EUR/JPY chart to show a bullish trend movement.

For the bullish situation, if the RBS 128.600 zone manages to revive the price that declined yesterday, the resistance around 129.300 will be the initial focus of the price increase.

The continued rise will test the SBR (support become resistance) zone of 129.700 before reaching the 130.00 focus level.