Market sentiment signaled a recovery with movements for the safe-haven currency showing a more pronounced decline in Tuesday's trading.
The yen among the lowest performing currencies allowed the US dollar to hit its latest 5 -year high against the Japanese national currency.
The New York session yesterday saw the US dollar lose its strengthening momentum following the release of ISM survey data for the manufacturing sector in the United States (US) which recorded declining figures.
Still, although the US dollar was slightly weaker against most other major currencies at the beginning of the New York session, it remained strong against the Yen.
The focus will be on the ADP NFP employment data report as well as the minutes of the FOMC meeting that will affect the US dollar ahead of the NFP report on Friday.
The price chart of the USD/JPY pair has soared to reach a high of 116.300 yesterday continuing the bullish trend movement of the previous few weeks.
Rising prices will continue to be expected as long as the price has not fallen below the Moving Average 50 (MA50) support level on the 1 -hour time frame.
Breaking the 113.600 resistance will push the price to continue to record the latest highs again on the USD/JPY chart.
On the other hand if the price has started to signal to make a decline, the level of 115.500 will be the initial focus of the zone to be tested.
The next lower decline will lead to the focus level on previous trades around 114.7400 and the RBS (resistance become support) zone of 114.300.
