Following the development of the geopolitical crisis between Russia and Ukraine earlier this week, the heat was felt when actions by Russian President Vladimir Putin had forced the United States (US) and Europe to intervene.
The situation clearly indicates that market sentiment is at risk of impacting key markets including stocks, commodities and currencies.
The safe-haven currency clearly gained an advantage in this risky market environment with the Yen managing to move stronger against the US dollar in opening trade earlier this week although the US dollar also managed to strengthen against most other major currencies.
If we observe the price movement on the chart of the USD/JPY currency pair, the price is still continuing the bearish pattern since last week to display the movement in a bearish trend.
The price also remains moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the USD/JPY chart for a bearish signal for investors.
Trading in the Asian session this morning (Tuesday), the price has dropped to the level of around 114.500 and hovered above that level until the continuation of the European session.
A lower decline is expected for the price to head to the support zone at 114.300-114.200 which was previously tested in early February.
The continued decline beyond the zone will record the latest 4 -week low with the next target being to head up to the 113.300 zone.
However, be vigilant in case a price increase occurs which could possibly signal for a reversal of the bullish trend.
Breaking the MA50 barrier will push the price to continue higher higher with the initial resistance that will be the focus is around 115.500 and 115.700.
Next, the resistance zone at 116.300 reached in the last 2 weeks will be the price focus zone for further rise.
