InstaForex

October 8, 2021

Risk-On Market Sentiment Drives EUR/JPY Soar Again

 Risk-on market sentiment returned to the financial markets this weekend after receiving some news and factors that pleased the market.


Among the factors influencing the sentiment was following a statement by US Senate Majority Leader Chuck Schumer announcing an increase in the debt ceiling.


Market relief was also embellished by a statement by Russian President Vladimir Putin who said he was willing to consider efforts in helping increase gas supplies.


Following that, it has resulted in the Yen currency trading again weak in Thursday's trading session and connecting to the Asian session as well as the European session today (Friday).


Looking at the price chart of the EUR/JPY pair, the price movement seems to increase again after only rebounding in the RBS (resistance become support) zone of 128.600.


The surge also saw the price break the Moving Average 50 (MA50) barrier level in the 1 -hour time frame and return to reach the SBR (support become resistance) zone of 129.300.



If the price continues to continue the uptrend, the price movement is likely to reach the resistance zone of 130,000 first before the price is expected to be able to jump higher.


A rise above the resistance zone will see the price re -heading to the highest resistance level that failed to break at the beginning of September trading around 130.700.


However, if the price declines, the RBS (resistance become support) zone of 128,600 will be tested once and the support zone of 128,000 will remain the focus zone if the price continues to plummet.