InstaForex

October 7, 2021

EUR/JPY Shows Aggressive Decline, Test Focus Zone ¥ 128,600

 Investors are seen continuing to take precautionary measures against the financial markets at this time which is still plagued by various risky market sentiments.


The price chart of the EUR/JPY pair seems to once again present an aggressive daily decline in Wednesday’s trading session by producing a plunge of over 100 pips.


The safe-haven currency of the Yen is seen to be taking little advantage of the opportunity to soar and give the Yen an advantage over the Euro.


Looking at the current movement, the price has already recorded an average decline of around 200 pips after reaching the highest resistance level of 130.500 at the end of September trading.


The price seems to have just tapped the Moving Average 50 (MA50) barrier level in the 4 -hour time frame to plunge back and head back to the SBR (support become resistance) zone of 128.600.



If the price decline continues below the SBR zone, the support zone at 128,000 will return to focus after the zone still failed to break previously.


Analysts expect the support zone to be able to re -support the uptrend on the EUR/JPY chart to reverse the movement of the uptrend pattern.


Yet it is not impossible for the price to rise again and the SBR zone of 129.300 will be reached again first before the expectation to head to the major resistance zone around 130,000.