Markets are still awaiting further discussions on the US economic stimulus package affecting trading sentiment this week after President Donald Trump's surprise decision to halt the talks.
The US dollar has remained weak since yesterday following a recent statement by Trump urging some help for the aviation and small business sectors to be approved. It restores previously risky sentiments.
The safe-haven currency is currently still trading slowly especially the US dollar and Japanese Yen. In comparison, the Yen is weaker against the US dollar as the bullish price is displayed on the USD / JPY chart.
Japan's economy is still struggling to recover after the pandemic. Central bank governor Haruhiko Kuroda said he was assessing the impact of the pandemic and would increase policy easing if necessary.
Despite the weakening US dollar, the price on the USD / JPY chart has managed to rise above the resistance of 105.800 and reached the high of 106.100 yesterday.
The level also recorded the highest level for the 3-week trade with the expectation that the rise will continue.
Prices moving above the Moving Average 50 (MA50) support level during the 1 hour movement also signal a bullish trend.
Slow price movements in the Asian session today after flat in the previous session moving below the highs reached yesterday.
A higher rise is expected to reach the level of 106,500 which is a resistance level tested in early September trading.
However, in the event of a price drop, the 105.800 level will return to focus by forming a new RBS (resistance become support) zone.
