Unstoppable, the price increase on the USD/JPY chart continues to soar to its latest 5 -year high!
What happened?
Previously the two currencies that were in the safe-haven category each gained an advantage in a risky market environment.
The US dollar and the Japanese Yen have alternately showcased their strengthening in recent weeks after risks in the market continued to rise in the wake of the war between Russia and Ukraine that had erupted.
However, at the close of trading last week, the Yen lost to the significant dominance of the US dollar which pushed the price to the latest high on the USD/JPY chart.
Market analysts see investors' focus has begun to shift to the central bank's monetary policy meeting this week.
It is very likely that the Federal Reserve (Fed) will raise interest rates for this March's meeting in the early hours of Thursday morning.
Meanwhile, the meeting of the central bank of Japan (BOJ) on Friday is expected to remain dovish which will affect the yen's depreciation.
Thus, investors who have begun to absorb the expectations have pushed the price increase to move earlier since last weekend.
The price initially managed to break the resistance at the 116.300 level before closing last week’s trade at the latest high around 117.300.
The rise continued further at the opening of trading this week as early as the Asian session started heading towards the resistance level of 118.00.
The continued price increase will continue to record the latest highs since January 2017.
Even so, investors still need to be vigilant if the price starts to signal for a change in the bearish trend again if the resistance at 118.00 fails to be broken.
The decline is seen to return to the level of 116.300 which is the resistance for the previous price to form a new RBS zone (resistance become support).
The continued decline will re-test the previously focused levels around 115.00 or lower at 114.700.
