Looking at the price chart of the USD/JPY pair, the price seems to continue falling to its latest low in 4 weeks around 112.745 in today’s trading session.
The Yen remains optimistic showing a strengthening as 10 -year US treasury yields remain stagnant below the 1.50% level to continue to support the value of the Yen.
In the meantime, the Yen index also seems to have been shocked to show an aggressive rise above 1% after so long it has been stuck at its lowest level since April 2017.
Investors will also be evaluating the release of US producer price index data in tonight's New York session to see whether the USD will give a surprise to strong or continue to be dragged weak.
The reaction of the movement made the decline close to 150 pips to continue the bearish trend that has been going on since Thursday and has destroyed the support wall at the 113.400 level.
The decline also seemed to give a significant signal for the price to make a lower decline as the price also remained moving below the Moving Average 50 (MA50) level.
If the price movement is strengthened to plunge, the latest support zone at 112,000 is seen to be the focus zone to be tested for investors to issue their next expectations.
If examined, the support zone is also a resistance zone to the price increase in late September before being successfully broken in early October trading. A drop in the price to that level will form a new RBS (resistance become support) zone on the price chart.
However, if the price returns to record an aggressive surge, the resistance level at 113.000 will be the initial level to be targeted before testing the SBR zone (support become resistance) 113.400.
If the price manages to re -break the SBR 113.400 zone, investors will probably expect the price to rise higher and the 114.000 level will be the target to be reached.
