InstaForex

October 29, 2021

Euro Take Advantage Of Leading Opportunity EUR/JPY Returns To Boom

 The 10 -year U.S. treasury yield that returned to show gains in reaching back to the 1.60% level has pressured Yen trading to weaken over the weekend.


Meanwhile, the Euro currency came as a surprise by showing dominance after receiving a signal from the decision of the European Central Bank (ECB) policy meeting yesterday to end their economic stimulus program.


Although the policy announcement met expectations in maintaining interest rates and ECB President Cristine Lagarde's statement on inflation did not at all upset the Euro to strengthen. Yet investors remain vigilant with forecasts that interest rates will not be raised until 2022.


If you look at the price chart of the EUR/JPY pair, the price seems to have managed to show an increase after the RBS (resistance become support) zone of 132.000 re -supported the price surge.


The rise displayed also saw an attempt to test the 133,000 resistance zone which the zone still failed to break in the previous one which exhibited excellent performance.


The price movement also re -traded above the Moving Average 50 (MA50) barrier level on the 1 -hour time frame to show early indications for the price to make a bullish trend change.



At the beginning of today's trading session (Friday), the price is seen slightly declining which is likely to want to form an HL (higher low) pattern before flying back and retesting the 133.000 resistance zone.


While the high level reached around 133.500 is expected to be reached and will be evaluated by investors to see the reaction of price movements before continuing to hunt for higher climbs.


If the price continues to show a bearish trend, the price is likely to head back to the RBS 132.000 zone first and the expectation of the 131.000 zone will be tested if the price continues to decline.