Market risk-off sentiment accompanying the opening of the European market session this afternoon saw safe-haven currencies such as the US dollar and Yen strengthen after a flat movement in the previous session.
This is due to the report of Russian President Vladimir Putin announcing the deployment of Russian paramilitary forces, indicating that the aggression against Ukraine is still ongoing.
This follows yesterday's report regarding the efforts of the Ukrainian military to slowly recapture the regions previously seized by Russia.
The yen was among the standouts to show gains, but investors are wary of the rising currency's return to weakness amid expectations for a Bank of Japan (BOJ) policy meeting outcome that remains dovish.
The chart of the EUR/JPY currency pair showed a sudden drop early in the European session this afternoon after a slow flat in the previous Asian session.
The price hovering at the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the EUR/JPY chart then indicates a decline and displays a bearish movement for the price.
From the level of around 143.500, the price has dropped to around 142.00 as of 3.00 pm local time, with the expectation that the price will continue to drop lower until the end of the session.
The target is at the 141.500 zone to be tested before the price will continue to decline to around 140.700 and then to the 140.00 zone.
However, be careful if the price drop that occurs is just a temporary reaction of the market and it is not impossible for the surge to be exhibited again.
For the expectation of an upward price movement, the resistance is at the 144.00 zone to be tested which is the high level reached by the price on Tuesday yesterday.
Further upside will test the key resistance zone at 145.00-145.500 which has been the focus of last week's trading.
