InstaForex

October 14, 2021

Euro Takes Opportunity To Drive EUR/JPY Soar More Aggressively

 The Yen continued to plunge to the lowest level ever recorded since April 2019 to allow the Euro to dominate price movements on the EUR/JPY chart.


Risk-on market sentiment continued to grace the financial markets from last week driven by several factors and indirectly remained pushing the safe-haven Yen currency to remain weak.


Judging by the price chart of the EUR/JPY pair, the price movement has already continued the uptrend that has been displayed since the beginning of this week's trading with a jump of around 200 pips.


The displayed rise has recorded its latest 2 -week high after successfully breaking the most ‘immune’ resistance level since the start of September trading around 131.600.


The price movement also continued to trade above the Moving Average 50 (MA50) barrier level on the 1 -hour time frame to strongly record a bullish trend if viewed on the EUR/JPY price chart.


A higher price increase is likely to test the 132.000-132.400 resistance zone which is the level that has curbed the more aggressive price surge since the end of June.



If the price movement is able to maintain an excellent record, the strongest resistance zone at 134,000 will be once again tested once the zone has been reached in early June trading.


Meanwhile, if the price reaction returns to show a downward trend, the price is expected to reach back to the RBS zone (resistance become support) at around 131.000.


Yet if the decline continues to decline lower, the probability of price movement may be driven to test the resistance level of 131.600 after it was successfully passed at the beginning of the week.