The strengthening of the US dollar continued to support the price on the chart of the USD/JPY currency pair to fly higher and re -test the resistance zone recorded in early July trading around 111.640.
Meanwhile, the influence of the Bank of Japan's (BOJ) statement which maintained policy easing by setting interest rates unchanged at -0.10%, has pushed the yen to remain weak.
Following this aspect, it has indirectly driven the price on the USD/JPY chart to show an ‘extreme’ rhythm by recording a jump of more than 250 pips!
Investors continue to wait for the next movement that will occur to determine where the direction that will be achieved whether it will rise higher or will make a reversal.
True to analysts' expectations, the price seems to be re -testing the hard -to -break ‘fortress’ last July around the 111.640 level.
However, if the zone is still intact, it is likely that the price movement will slightly decline to the RBS (resistance become support) zone of 110.800 to make the latest HL (higher low).
If the RBS 110.800 zone is not able to help the rebound, the price is expected to break through that zone and test the next RBS zone at 110.100 to signal a downtrend.
A rise past the resistance zone of 111.640 will stimulate the price movement on the USD/JPY chart to head to the next zone to be tested around 112.200.
Zone 112,200 is also the strongest level to break in the last 19 months and if the price manages to test and pass that level, the price will create the latest 2 -year high.
