The US dollar returned to a gloomy movement against the Yen after hitting a 5 -year high last week.
On the price chart of the USD/JPY pair, the price has started to show a more flat pattern after reaching the high of 116.300 last Tuesday.
Investors are starting to see prices losing momentum starting to signal for a decline, with the price’s nearest support level at 115,500.
Also gives an early indication of a change in the bearish trend when the price moves below the resistance level of the Moving Average 50 (MA50) on the 1 -hour time frame.
However, the price is likely to resume rising again if the 115,500 support zone manages to push the price higher again.
Investors will assess market sentiment earlier this week by monitoring a number of factors that are in focus and could affect both the safe-haven currencies the Yen and the US dollar.
If the bullish trend of the price on the USD/JPY chart continues again this week, the resistance level of 116.300 will be tested again before continuing higher.
Overcoming the resistance will push the price to record the latest high again after the highest level in the previous trade was since January 2017.
On the other hand, if the price plunges lower beyond the support level of 115.500, the next decline will lead to the focus level of the previous increase which is around 114.700 and the 114.300 zone.
