Checking the price chart of the USD/JPY pair, the price is seen to have returned to the upside in yesterday's (Wednesday) trading session after moving horizontally on Tuesday.
As far as the level around 112.725 only the price can be reached to make the lowest level of the last 4 weeks, before jumping almost 150 pips to refute the previous fall.
The improvement also re -tested the resistance zone at 114,000 which was also the zone when the price started plummeting at the close of trading last week.
The recent resurgence that the Yen wants to exhibit does not seem to last long when curbed by the USD currency shock which received strong support to strengthen.
As is well known, the record -high jump in the US inflation rate as well as the increase in US 10 -year treasury yields have driven the USD to an outstanding performance.
As a result, it has also indirectly affected the Yen index which has just wanted to make a rise, by falling back to its lowest level since April 2017.
If the USD is able to continue the price potential on the USD/JPY chart in recording a surge, the resistance zone at 114.460 is expected to be the next target for investors.
Meanwhile, a more violent surge will see the price attempt to test the all -time high of around 114.700 reached over the past 4 years.
However, the previous strongest support zone which became the RBS (resistance become support) zone at 113.400 is likely to be the next direction if the price continues to decline.
A drastic decline will see the price movement once again track to the latest support zone at 113,000.
