Looking at the price chart of the USD/JPY pair, the price seems to have slipped when it failed to enter the resistance zone of 114.460 to show a plunge at the close of trading last week (Friday).
The price movement is also seen to have declined below the SBR (support become resistance) zone of 114.000 and re -traded below the Moving Average 50 (MA50) barrier level in the 1 -hour time frame.
Entering the market opening this week, the price seems to have made a ‘gap’ before closing again in the early session of the Asian session today (Monday) with an aggressive decline and rebounding in the European session.
The ‘ninja’ currency pair was influenced by the publication of preliminary readings of gross domestic product (GDP) price index data which recorded mixed readings.
Meanwhile, the Yen was also plagued by worries following the country of the rising sun again shrouded in an increase in Covid-19 infections which affected consumer spending.
Still, the influence of the USD remains driven by the issuance of market -shocking inflation rates, where it is likely to be an important factor capable of strengthening the value of the USD.
The decline on display also looks like it is making the latest HL (higher low) to continue to maintain the uptrend and is expected to once again try to test the 114.460 resistance zone.
Of course, the high level since March 2017 is likely to be the next direction and main focus of investors if the price movement is able to jump higher.
But if the price on the USD/JPY chart is still constrained by the SBR 114.000 zone, the price is expected to return to the RBS (resistance become support) zone at 113.400.
The bearish trend entering the RBS zone will also see the price remain to show a horizontal movement between the 113,000 and 114.460 levels since mid -October.
