InstaForex

October 6, 2021

After a steep decline, USD/JPY is flying higher again

 The greenback returned to push the price on the USD/JPY chart to show a climb back to the 19 -month high reached last week at 112,000.


The surge in the price movement presented is seen only making a rebounce in the RBS zone (resistance become support) 111.000 to jump back close to 100 pips.


The 10 -year U.S. treasury yield, which has risen over 1.57%, has supported the U.S. dollar to strengthen and beat the Yen’s dominance in the past.


The strengthening of the USD also drove the price on the USD/JPY chart to re -trade above the Moving Average 50 (MA50) barrier level on the 1 -hour time frame and exhibited an uptrend.


Most likely the price movement is expected to re -test the 112,000 resistance zone which is the strongest zone to break in more than 1 year.



If the price increase exceeds the resistance level, it is expected to stimulate price movements to create the latest highs for the 3 -year trading period.


Investors are expected to assess the reaction of price movements to retest the zone that has re -supported the price surge in the RBS 111.000 zone if the downtrend returns.


While the lower plunge saw the next RBS zone around 110,000 be re -touched and will see a more significant change in the downtrend pattern.