Did you know that this week, the Euro managed to reach its highest level against the Yen since 2008! Shocking isn't it?
The ¥151.60 level that the price reached last Tuesday was the highest since September 2008 recorded on the EUR/JPY currency pair chart.
This shows the continued depreciation of the Yen following the monetary policy of the central bank of Japan (BOJ) which is maintained at an 'ultra-loose' level.
After Kazuo Ueda took over as governor, he is seen to be maintaining the previous loose monetary policy to first monitor the current economic situation in Japan for the next plan.
Heading towards the end of this week, the Yen is again exhibiting strengthening due to its advantage as a safe-haven currency when concerns about the banking crisis still surround the current market.
Meanwhile, the Euro began to show a decline following the decision of the European Central Bank's policy meeting on Thursday yesterday.
Driving the decline of the Euro, the European Central Bank (ECB) has increased interest rates by 25 basis points, which is the lowest increase since the central bank started policy tightening measures since July 2022.
However, analysts see the Euro potentially rising again after the ECB stated that policy tightening is still needed to lower inflation. A rather hawkish statement.
The price trend on the EUR/JPY chart at the end of the week is seen heading towards a lower level following a bearish pattern showing the price moving below the Moving Average 50 (MA50) barrier on the 1-hour time frame of the chart.
After yesterday's decline reaching around 147.200, the price showed a rebound until continuing in the Asian and European session trading today (Friday) which is flat at 148.00.
Further declines will be expected for the price towards the support zone at 146.500 which has successfully prevented the price from falling lower for the previous 2 consecutive weeks of trading.
If it breaks through, the price can drop lower towards the more important focus zone which is at 145.00.
However, if the price manages to soar past the MA50 barrier, investors will evaluate it as an early signal for the price to resume the previous bullish trend again.
The price increase that managed to break through the 150.00 level is likely to return to the record high of 151.60 that has been reached.
