The price movement on the chart of the EUR/JPY currency pair towards the end of this week shows a change in the direction of the bearish price again after the attempt to continue the rise higher.
Investors had previously expected higher gains as the Yen was seen to continue to move weakly after Japan's central bank maintained a loose monetary policy.
However, the decline in prices has re -emerged driven by the release of European economic sector data published yesterday showing declining figures, adding to concerns over the risk of an economic recession.
The bullish pattern at the beginning of this week which continued the bullish trend of the previous week is seen to have tested the resistance zone at 144.00 which also failed to break last week.
The same situation was repeated when the price, which once again failed to break the resistance on a bullish attempt last Wednesday, returned to display a decline again on Thursday as a signal to end the bullish trend.
Also giving an indication of a reversal of the bearish trend, the price has moved lower below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the EUR/JPY chart with the decline having reached the level of around 141.400.
The price movement was flat on trading that continued today (Friday) around the 142.00 level throughout the Asian session to the European trading session.
If the price continues to decline lower before the close of the last trading session of this week, it is likely that the price may hit back to the focus zone at 140.00.
For the lower bearish target the price is at around 138.00 which is the lowest level of the price in last week’s trading.
On the other hand if the price manages to make a rebound past the MA50 barrier, investors will evaluate it as an early signal for a bullish movement of the price again.
The continued rise will again test the resistance at the 144.00 zone before targeting the latest high of 145.00.
