The deck due to the 10 -year fall in U.S. treasury yields has slightly influenced the Yen to show dominance at last week’s trading close against the U.S. dollar.
That is, the USD did not manage to strengthen even though the issuance of US NFP data exceeded expectations due to several other factors that have hampered the value of the USD to continue to rise.
But at the start of trading this week, the Yen appeared to fall slightly as investors were seen taking a cautious stance ahead of the release of US inflation data to be released on Wednesday.
On the price chart of the USD/JPY pair, the price is seen to continue the decline on Thursday until the close of Friday trading by producing a jump of almost 100 pips.
But the trend of price movement is still moving horizontally if observed on average it seems that investors are still vigilant in assessing the next price expectation.
Entering today's (Monday) trading session for the market opening earlier in the week, the 113.400 support zone remains seen as the most ‘immune’ zone to break after the zone returns to support the current price spike.
If the price movement continues to gain support to climb, the price is expected to head to the SBR zone (support become resistance) 114.000 before continuing the climb to the top.
The higher peak will see the target at the resistance zone around 114.460 to be tested and is expected to be able to reach the high level since April 2014 at 114.700.
On the other hand, if the price movement continues to maintain the plunge like last week, the price is likely to decline to the support zone of 113.400 before expectations will plummet even more.
A significant decline will see the price return to the support zone at 113,000 and will give a clear signal to investors for the price to change the trend.
