Ahead of the opening of the European session on Tuesday, the US dollar was seen again exhibiting a rebound after previous sessions saw the king of the currency depreciate.
The New York session yesterday more markedly saw the weakness of the US dollar when weighed down by declining US bond yields in addition to gains in major Wall Street market indices.
The resumption of bond yields was seen again supporting the initial strengthening of the US dollar throughout the Asian session despite slower price movements.
Investors will be wary of US dollar trading ahead of the US inflation data report for February to be published in tonight’s New York session.
Let's take a look at the price movement on the USD/JPY currency pair chart this week.
Tuesday’s price movement that exhibited a decline gave an early sign for the end of a series of gains a few weeks earlier with the US dollar remaining dominant against the Yen.
The yen remained weak in the market under comments by Japan's central bank (BOJ) deputy governor Masayoshi Amamiya who said interest rates would remain low, and could even be lowered if conditions required.
Hovering at a 9 -month high, the price dropped to 108,500 to test the RBS (resistance become support) zone after falling lower below the Moving Average 50 (MA50) barrier in the 1 -hour time frame of price movement.
Yet the re -strengthening of the US dollar in today’s Asian session saw prices rise again to break the MA50 barrier.
If the price increase continues, the high level reached yesterday will be overcome for the price to enter the focus resistance zone of 109.400-110.00.
The zone became a price resistance during June trading last year before the market saw the price drop to below the 103.00 level until the end of December.
On the other hand, if the price plunges lower below the RBS 108.500 zone, the lower decline is seen to be to the level around 107.400.
The next lower decline will lead to the level of around 106.500
