Risky market sentiment driven by market concerns over the Russian-Ukrainian geopolitical crisis continued to impact price movements earlier in the week.
Safe-haven currencies including the Japanese Yen benefited in a risk-off sentiment situation like this as investors turned to safe-haven investments.
If judged on the price movement of the EUR/JPY currency pair chart, last week’s bullish pattern has come to an end when the Yen’s strengthening has managed to push the price lower again at the close of the weekend trading.
The high up to the 133.00 zone was reached last Thursday, however the price has plunged back to the level of around 130.500 before last week’s trading ended.
Continuing the trading earlier this week, the decline is still seen with the price touching the level of 130.100 on Monday yesterday but the price rebounded and hovered back around 130.500 to continue in today's trading (Tuesday).
As of the European session, the price is still flat below the 130.500 level and the price movement that remains below the Moving Average 50 (MA50) barrier level also gives a bearish signal.
If risky market sentiment continues to support the strengthening of the Yen, a lower decline is expected to head to the 128,400 support zone.
The lower decline is seen to reach the level of 127.400 which was previously the price focus zone in December 2021 trading.
On the other hand, if the price rises again, the SBR (support become resistance) zone at 131.600 will be tested.
Passing the MA50 resistance level on the 1 hour time frame of the price movement will also give an early signal for a reversal of the bullish trend.
A higher rise will target up to the 133,500 high which still failed to reach last week’s price.
As for the Euro, some economic data as well as German economic sentiment from the ZEW survey that will be published in the European session soon is expected to affect the change in the value of the Euro.
