The Yen started trading earlier in the week yesterday showing a significant decline, slipping to a 7 -year low against the US dollar.
In addition to the strengthening by the US dollar in the market, investors focused on the latest indications by the Japanese central bank regarding its monetary policy.
The Bank of Japan (BOJ) remains signaling to maintain its policy easing even as most of the world’s major central banks have moved into a phase of policy tightening.
BOJ Governor Haruhiko Kuroda also warned of high uncertainty over the effects of the Russian -Ukrainian war crisis that continues to this day.
Assessing the price movement on the chart of the USD/JPY currency pair, the price showed a rise in Monday's trading yesterday to the latest high level around 125.700.
This is the highest price level ever recorded since June 2015.
Yesterday's price increase is actually seen to continue the bullish trend on last week's movement with the price still moving above the Moving Average 50 (MA50) support level on the 1 -hour time frame on the USD/JPY chart.
It is not impossible for the price to continue to rise higher above the high reached yesterday which was also the price resistance zone in 2015 trading.
If the price continues to soar reaching its latest high overcoming resistance in 2015, then the latest price level reached is the highest since 2002!
On the other hand if the price starts making a decline again below the MA50 support level, the signal for an early change of the trend will make investors wary of a re-fall in the price.
The decline is seen to lead to the support level around 123.500 before the continued decline will test the RBS zone (resistance become support) at 121.500.
