The price movement on the USD/JPY currency pair chart remains exhibiting a bearish pattern for the third consecutive week with the depreciation by the US dollar against the Yen.
Japan's central bank governor Haruhiko Kuroda's speech in parliament on Friday said the Japanese economy was growing well with more aggressive policy easing by the central bank. He also said it was too early to change the current policy which was seen to support economic recovery.
Japanese Prime Minister Yoshihide Suga said in March that his government was targeting higher wage rates in Japan. He believes the increase in people's income will support households affected by the pandemic.
After 3 weeks, the Yen is seen to move better against the US dollar with the decline displayed on the USD/JPY chart.
After reaching a high of around 111.00 at the end of March, the price has been declining steadily over 300 pips so far this week.
USD/JPY trading on Wednesday and Thursday was seen testing the 108.20 resistance but it was difficult to break it and hovered lower around the 107.80 level.
The continued decline will continue to push the price to its latest 7 -week low.
A drop below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame of the price movement also signals for the price to continue moving in a bearish trend. However, the price movement slowed towards the end of the week.
If the price rises again to break the price zone 108.200-108.500 will give a signal for a bullish trend again.
A higher rise will lead up to the focus zone at 110.00.
