Market sentiment assessed still risky by investors on this weekend’s trading is expected to support positive movements of safe-haven currencies including the US dollar and Yen.
Although expected to strengthen, the Yen failed to react positively after manufacturing PMI data in Japan for September published during the Asian session this morning posted a reading that rose to a 6 -month high.
While the gradual trading into the European session will make European economic sector data the focus for investors to assess the current economic health.
The Euro currency is likely to be affected by the latest data readings for the European manufacturing and services sectors particularly in Germany as the largest economy.
The movement of the Euro against the Yen was previously slightly good although it did not display any drastic price movement.
Yet examined on the chart of the EUR/JPY currency pair, the price has managed to maintain a bullish pattern for several weeks straight up to this week.
So far this week, the price increase has reached its latest 4 -month high to around 133.500 last Wednesday.
But on Thursday yesterday, the price began to give an early signal for the end of the uptrend.
The price made a smeula decline below the Moving Average 50 (MA50) support level on the 1 -hour time frame for an early indication of a bearish trend.
The latest support level of the price is seen at 132.300 which was tested in the New York session yesterday and the price managed to slightly rise again in today’s trading (Friday), but is still below the MA50 barrier level.
If the price decline continues lower below 132.300, the expected price decline will head to the next focus zone around 131.00.
If the 132.300 level remains successful in curbing the fall of the lower price, the price is likely to be supported to rise again.
The resistance zone at 133.500 will once again be the focus of the price to be tested before the price continues to hunt for the latest highs.
