In addition to the US dollar, risky market sentiment was also seen to affect the appreciation of the Yen as a safe-haven currency in the market earlier this week.
Markets are still evaluating the impact of movement restriction measures in China which are seen to disrupt current global economic growth.
Moreover, the market is still shrouded in concerns over the protracted escalation of military and economic tensions between Russia and NATO countries.
Examining the price movement on the chart of the EUR/JPY currency pair, last week's price increase stagnated at the 140.00 high before starting to show signs of decline over the weekend.
The weaker euro following the pace of the strengthening US dollar is seen to continue to allow the Yen’s dominance over the movement on the current price chart.
Continuing earlier this week, the price has continued its lower decline after a signal for a bearish trend change where the price moved below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame.
Monday's decline had passed the 137,500 focus level but continuing in the Asian session on Tuesday morning yesterday, the price re -tested the level.
Trading continuing into the New York session yesterday saw a more aggressive plunge in prices to hit a recent 3 -week low to around 132,200.
Trading in the Asian session this morning (Wednesday) showed an increase to 136.00, but analysts still expect the decline to continue in the next session based on the bearish pattern of prices.
For a lower decline, the price is expected to head to the focus zone at 133.500 which is the RBS (resistance become support) zone.
Yet in the event of a rebound, the 137.500 zone will return to the focus to be tested which is seen as resistance before a clearer bullish signal.
The continued rise will return to target the high level reached last week at 140.00 again.
