Wow! The inexhaustible price is sliding to lower levels on the chart of this popular EUR/JPY currency pair. What happened?
Of course, the crisis of war between Russia and Ukraine that led to the fall in prices and analysts have been expecting it since last week.
The euro is expected to continue to come under pressure by the Yen which benefits in a market environment that remains risky.
Russia is still reportedly continuing its aggression on Ukraine. In fact, President Vladimir Putin also told that the attacks will not be stopped as long as the purpose of his war is achieved.
Therefore, the Yen as a safe-haven currency is expected to continue to strengthen towards this weekend's trading.
The price on the EUR/JPY chart has now continued yesterday's decline hitting the level of 127.400 and hovered in that zone until resuming today's trading (Wednesday).
The drop to that level is a 3 -month low after being tested in last December's trading.
The 128.00 level is an obstacle for the price to make a rise and it is expected that the lower decline will resume below the 127.400 level in the next session.
The continued decline is seen heading towards the lower support zone around 126.00 to record the latest 14 -month low.
But investors will be wary if the price starts to rise and crosses the Moving Average 50 (MA50) barrier level in the 1-hour time frame. This will give an early signal for possible trend changes.
For bullish expectations, the resistance zone that will be the initial focus is around 129.500 or higher to break this week’s highs.
Next, the SBR (support become resistance) zone at 130.700 will be the next price focus for the continued uptrend.
