The price movement on the USD/JPY currency pair chart attracted the interest of many traders as it showed a surge at the beginning of the week while the focus this week was on the FOMC meeting.
The US dollar managed to strengthen against the Yen as the rally was seen to break past the 110.00 price level in Monday's trading before flattening above that level yesterday.
The 110.00 level is now a support level for the price and the movement above the Moving Average 50 (MA50) level on the 1 -hour time frame on the USD/JPY chart also projects the bullish pattern that will continue.
However, the direction of the next price movement will be determined after the results of the FOMC meeting in the early hours of Thursday morning.
The move for the Federal Reserve (Fed) to implement asset purchase reductions (tapering) is still under discussion with analysis on focus data such as the NFP report and US inflation data that have been published in previous weeks.
A higher price increase on the USD/JPY chart is seen to test the resistance level reached by the price 2 weeks ago around 110.300.
Exceeding that level will make the latest target for the price at 111.00 which is the resistance level tested in March last year after the last time the price was around that since March 2020.
Be careful if the price goes back down below the 110.00 level and also the MA50 support level which will be an early signal of a bearish trend.
Further decline in the price will return to the focus level of 109.400 after passing the RBS minor zone (resistance become support) around 109.600.
