The war has begun! Russia has already launched an attack on Ukraine this morning.
The bitter situation has affected the movement of major currencies in the market with safe-haven currencies such as the US dollar and the Yen significantly exhibiting strengthening.
The yen continued to benefit to strengthen until trading resumed in the European session this afternoon against most other major currencies with reports of developments in the Russia-Ukraine crisis seen worsening.
The price chart of the EUR/JPY pair is already showing a decline to the latest 4 -week low to continue the bearish trend movement.
In Tuesday and Wednesday trading yesterday, the price was seen testing the resistance level of 130.700 in the SBR (support become resistance) zone before the geopolitical crisis began to be reported to be more tense until early this morning.
Thus, the Yen which started to strengthen since the New York session yesterday has pushed the price on the EUR/JPY chart below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame until the end of the session trading to the level of around 130.00.
However, the development of the crisis became increasingly critical this morning and the attacks initiated by Russia continued to provoke panic in the market.
Prices continued to decline significantly since the Asian session this morning continued into the beginning of the European session.
The decline passed the support level at 129.400 and continued further decline touching the 128.350 level as of 3pm local time.
The lower decline is expected to continue in the New York session with the price target to test the support zone at 127.400.
However, if the price increase occurs, the 129.400 zone will be the initial resistance for the price before the continued increase will lead to the 130.700 zone that was tested yesterday.
But the price increase is quite difficult to happen with the war situation that is currently erupting.
