EUR/JPY Analysis – Price Recovers Slightly After Plunging To 157.00 Zone

<p>&nbsp;The price chart of the EUR/JPY currency pair experienced another decline on Thursday yesterday as the bullish pattern displayed from the beginning of the week failed to be maintained.</p><p><br /></p><p>The drastic drop in prices in the New York session yesterday was caused by the surprise at the European central bank meeting yesterday.</p><p><br /></p><p>The European Central Bank (ECB) raised interest rates again by 25 basis points to 4.50% when the majority of the market expected interest rates to be maintained.</p><p><br /></p><p>However, the Euro currency did not rise strongly, instead experienced a significant decline until the end of the session.</p><p><br /></p><p>This is due to dovish signals by ECB President Christine Lagarde that this is likely to be the last hike by the central bank and will be maintained until the economy recovers.</p><p><br /></p><p>From the level of 158.400, the price has plunged to break through the level of 157.00 as a result of the market's reaction to the ECB meeting.</p><p><br /></p><p>However, after reaching around 156.700, the price slightly recovered above the level of 157.00 again in today's trade (Friday) until the beginning of the opening of the European session.</p><p><br /></p><p><br /></p><p>However, the price movement that remains below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the EUR/JPY chart still gives a signal for bearish movement.</p><p><br /></p><p>The expectation for the price is to continue the decline below 157.00 again and record another recent low.</p><p><br /></p><p>The target is towards the price support zone around 155,700 which was last tested in early August.</p><p><br /></p><p>However, if the price manages to continue rising higher, the 157.700 zone will try to be broken and also the MA50 barrier to signal a trend change.</p><p><br /></p><p>The high level of 158.600 reached this week will be the next target to overcome before the price goes up to the level of 159.00.</p>