The price movement on the chart of the USD/JPY pair has climbed to a 19 -month high of around 112,000 before continuing to plunge nearly 100 pips in the New York session yesterday.
The factor was also influenced by risky sentiment as the safe-haven Yen took the opportunity to dominate other major currencies in times of weakness in the US dollar.
The declining trend has also been traded below the Moving Average 50 (MA50) barrier level to give a clearer indication on the USD/JPY price chart for a bearish trend change.
This situation has ended a series of price increases for 6 consecutive days since last week which has resulted in an increase of around 300 pips.
Judging by the current movement, analysts expect the price to test the resistance level of 111.600 first to make the latest LH (lower high) before continuing the decline to lower levels.
If the price declines it is likely to retest the RBS zone (resistance become support) 111.000 and head to the RBS zone around 110.000 to signal the next movement.
However, if the movement returns to break the resistance level of 111.600, the price is expected to return to the resistance level of 112.000 again and refute the lower downtrend.
A jump above the resistance level will support the price movement to create the latest highs for the 3 -year trading period.
