Interesting to say for the price movement on the chart of the EUR/JPY currency pair which is still seen maintaining a bullish trend over the past few weeks, pleasing investors who maintain long positions on the price chart.
If one recalls the price movement in the last two months of 2021, trading in November showed a bearish trend before the price flattened in December at the support zone level of 127.400.
The rise in prices began to be seen again with the bullish trend of prices successfully maintained in the last 2 weeks of 2021 last December and continued the positive trend in the first week of 2022.
But investors need to be careful to take into account the factors that can affect the Euro and Yen.
In particular the Yen as a safe-haven currency, market sentiment needs to be monitored as the development of the Omicron coronavirus could change the confidence of market players.
For this week’s price movement, the price has reached a high of 131.600 last Wednesday, recording the latest high for an 8 -week period.
Continuing on Thursday and Friday trading, the price rebounded from that high and hovered above the 130.700 level which is seen as the current support level of the price.
Investors are beginning to be wary for the expectation that the bullish trend has ended with early signals of price movement starting to move below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
If the price plummets and breaks the support of 130.700, the decline is seen to test in some zones RBS (resistance become support) around 130.100 and 129.600.
However, if the price still manages to maintain the bullish pattern of the price at the end of this week, the 131.600 high will be tested again for investors to assess whether the latest high will be recorded again.
Expectations for a higher rise are likely to surpass the 132.00 price level if market sentiment recovers to impact the depreciation of the Yen.
