The change in price direction started to be assessed on the EUR/JPY currency pair chart at the close of trade at the end of last week which displayed a bearish pattern again.
This is seen to have ended the bullish price trend of the previous week after the price increase from the 137.500 zone has crossed the 140.00 zone and last Thursday the price has reached the height of 142.300.
After reaching the high level, the signal of a change in the price direction began to be displayed with a price plunge that continued on Friday and then fell back below the 140.00 zone.
It seems that the Euro currency failed to sustain the strengthening against the Yen despite its advantage in the market last week.
This is following the decision of the European central bank (ECB) policy meeting which has increased interest rates by 50 basis points, for the first time in more than a decade.
The release of European manufacturing and service sector data that dipped below contractional levels at the end of the week continued to push the Euro to end last week's trading on a bleak note.
The yen, on the other hand, gained an advantage in a risky market environment as a safe-haven currency, but it is at risk of further depreciating due to the central bank of Japan (BOJ) maintaining its position for continued monetary policy easing.
The price on the EUR/JPY chart is signaling a continued bearish move this week moving below the Moving Average 50 (MA50) barrier level on the 1-hour time frame.
Continuing on this week's market opening, prices moved slowly around 139.00 from the Asian session continuing into the early European session.
If the price continues to drop lower, the support zone at 137,500 is expected to be the target that will be tested again.
A decline that crosses the zone will record a new 9-week low.
However, if the price manages to rise again past the 140.00 zone and also the MA50 barrier level, investors will evaluate it as an early signal for a change in the price trend.
The continued rise will test last week's highs before heading to a focal resistance zone at around 144.00.
The price will record the latest 4-week high level if it manages to reach the zone which previously became an invincible resistance after being tested several times during trading last June.
