The downtrend of US dollar trading in the market can be seen more clearly on the price chart of the safe-haven currency pair USD / JPY where the series of price increases since last week is expected to end.
But it is still early to determine the decline in price movements on a larger scale.
If observed, since last week the price has made a higher rise after passing the 104.800 resistance zone.
The price continues to rise since the beginning of this week with the movement above the Moving Average 50 (MA50) support level remaining a bullish trend signal on the USD / JPY chart.
However, last Wednesday, the price that reached the high level in the resistance zone of 106,200 failed to continue rising after twice testing the zone.
Prices then showed a reversal and moved lower below the MA50 resistance level on Thursday trading which signaled a change in the bearish trend following the depreciation of the US dollar.
The RBS (resistance become support) 105.600 zone was tested on today's European session trading which is the price support level.
A lower decline past the zone is seen to be heading back to the RBS 104.800 zone before the next decline will test the 104.400 support level.
However, if the price manages to soar again, the resistance zone 106,200 reached this week will be tested again.
The price that managed to break through the zone is seen to go to the level of 106,500 to test the resistance level as well as record the latest high of 5 weeks.
In any case, investors need to monitor the factors that influence the US dollar in addition to the current market sentiment for these two safe-haven currencies.
