The USD/JPY pair is among the focus of investors this week after a series of continuous gains were displayed since January.
As of March trading, the price has reached a rise of over 600 pips from the low of 102,600 to pass the price level of 109.00.
Examining the price movement last week, the price has reached a high of 109.200 before declining again at the support zone around 108.400.
Continuing on this week's trading, the US dollar managed to maintain its strengthening against the Yen to make a comeback making gains and test the resistance zone last week.
However, the movement of the US dollar is relatively limited while investors are cautious ahead of the FOMC meeting and a statement from the Federal Reserve (Fed) for the upcoming monetary policy will give investors the latest indications for US dollar trading.
While the Yen remained weak as monetary policy expectations by the Bank of Japan (BOJ) remained loose. The outcome of the BOJ meeting on Friday will be awaited by investors.
Investors are currently monitoring the price movement on the USD/JPY chart with the resistance zone 110.00-109.400 being the main zone to be price tested.
The last time the price tested the resistance zone was in June 2020 before the price moved in a downtrend until the end of the year.
If the price manages to pass the zone, the expectation of a higher bullish target is heading towards the resistance zone of 111.500.
On the other hand, if the price returns to decline, the RBS (resistance become support) zone 108.500-108.200 will act as a support zone for the price to resume rising.
If the price remains falling lower, investors will start to see a change in the price trend on the USD/JPY chart for the price to fall towards the previous focus levels around 107,400 and 106.500.
