Fans of the EUR/JPY chart should be wary as market technical analysts began to view the price as giving early signals to make a decline.
Although the Yen traded mixed influenced by changes in market sentiment yesterday, the Euro showed a dismal performance after the release of German economic outlook data in the European session yesterday still hovering at alarming figures.
But investors did not rule out the possibility of a surge for the Euro could happen after this as there are signals for an interest rate hike next summer by European central bankers.
On the technical side, the price movement on the EUR/JPY chart below the 137.500 level on the decline made yesterday signals for a lower fall.
Until the end of the New York session continuing the Asian session this morning (Wednesday), the price moved flat below the 137.500 level which is now a resistance for the price.
Also gave a bearish signal when the price hovered below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the EUR/JPY chart.
The decline if continued is seen to test the level around 136.600 which has been the price support level over the past week.
Continuing the bearish trend, the price will head up to the level of around 134.800, which is the focus level reached by the price in the last week's trading at the end of April.
However, if the price spike re -passes the 137.500 level, the high reached at the beginning of the week around 138.300 will be the focus to test the price again.
The rise above that level is seen to go to the previous resistance zone at 140.00 after the price reached the rise to that level on April 21, which recorded the highest level since June 2015.
