The US dollar continued to strengthen this week with market sentiment still risky remaining giving an advantage over the safe-haven currency.
However, the yen failed to move strongly against the US dollar following a passive statement by Japan's central bank governor Haruhiko Kuroda on the health of the Japanese economy.
The impact of the Covid-19 crisis on the Japanese economy is seen to continue for a longer period and the Bank of Japan (BOJ) is poised to increase policy easing if necessary.
The US dollar managed to jump to a 1 -year high against the Yen as shown on the price movement on the USD/JPY pair chart.
The price movement was previously seen flat before the price showed a bullish pattern in last week's trading.
The price has made an increase from the support level of 108,500 to a high of around 109.850 to record a 9 -week high.
Continuing this week's trading, the price continued its rise from the 109.400 level to test the 110.00 resistance level in the Asian session this morning.
In the European session, prices have surged higher past the resistance following the continued strengthening of the US dollar with the surge in US treasury yields to recent highs.
The continued rise is expected to head to the level around 111.00 to record the latest highs again this week.
However, if the price declines again below the 110.00 level, the 109.400 level will remain the price support level.
A drop below the Moving Average 50 (MA50) support level on the 1 -hour time frame will also signal for the beginning of a bearish trend.
For the bearish trend, the price is expected to re -test the 108,500 support zone tested last week.
