November 2, 2021

What is the Real Direction for USD/JPY? This is a ‘Hint’ for Investors

 The USD returned to a weaker move against the Yen earlier this week to begin November trading after the currency's monarch's strengthening failed to be sustained as displayed at the end of last week.

According to the minutes of the Bank of Japan (BOJ) meeting, the Japanese economy appears likely to improve as the impact of the Covid-19 pandemic on the country of the rising sun is waning.

The follow -up has also made the Yen index return to show a resurgence after the movement has always remained moving at the lowest level recorded since April 2017.

Looking at the price chart of the USD/JPY pair, the price movement seems to be back to make a critical plunge after showing gains last week until the European session yesterday (Monday).

It seems that the resistance zone at 114.460 is still the most ‘immune’ zone to pass and often restrains price spikes despite having been tested several times since October trading.

The decline approaching 100 pips is also seen to remain with the horizontal movement pattern and once again has broken the resistance level of 114.000 as well as the resistance level of Moving Average 50 (MA50).

Investors are expected to keep an eye on the support zone around 113.400 which the zone often supports price spikes before expectations will decline further.

A lower jump will see the price return to the next support zone at 113,000 and will show an early signal for the price to change the bearish trend.

However, if the price movement regains support from the support zone, the price is likely to once again head to the SBR (support become resistance) zone of 114.000.

While the resistance zone 114.460 remains the key zone that will be the focus to be reached before the price is able to continue to hit the latest high of almost 4 years.