The failure of the Japanese Yen to capitalize on risky market sentiment to strengthen as a safe-haven currency, has widened a larger gap in value against the more significantly strengthened US dollar.
If we observe the price movement on the chart of the USD/JPY currency pair, the price has displayed a clear bullish pattern for 2 consecutive days until yesterday.
Last week, the price was seen testing the resistance zone at 111.00 before flattening below that level continuing earlier this week’s trading.
Yet on Wednesday, an energetic price spike was exhibited from the level around 110.500 to return back to the 111.00 resistance.
The rise also signals for a resumption of bullish trend on the USD/JPY chart after the price passed the Moving Average 50 (MA50) barrier on the 1 -hour time frame of the price movement.
The momentum of the surge continued yesterday to rise higher from the 111.00 price zone to reach a high of around 111.600 to record the highest level this year surpassing the high reached in March.
Prices started to slow around the price area continuing into the Asian session on Friday morning while investors awaited the US NFP jobs report on the New York session shortly.
If the uptrend is successfully maintained, the next price target level is to head to 112.400 which is the price -tested resistance zone in March 2020 trading.
For a bearish situation again, the 111.00 level is seen to be the price support forming the latest RBS (resistance become support) zone.
The lower decline will re -test the weekly low at around 110.500 before a continued decline is expected to the 110.00 focus level.
