The price movement on the USD/JPY currency pair chart is among those that stole the spotlight on this week’s trading as it continues to hunt for the latest 20 -year record high!
After a temporary depreciation of the US dollar which saw the price fall slightly below the 126.00 level, the price has shown a rebound in the New York session yesterday continuing into the Asian session this morning (Friday).
As of this afternoon's European session, the price has reached its latest high of around 126.600 as of 3pm local time.
This is the highest level reached since May 2002.
Expectations for the strengthening of the US dollar for a longer period will continue to push prices further moving higher.
After the recently published US inflation data hit its latest 40-year high, investors are more optimistic about the Federal Reserve’s (Fed) action to further tighten policy.
Meanwhile, the central bank of Japan (BOJ) continued to maintain a loose policy pushing the Yen to continue to move weakly in the market.
Higher price increases are likely to reach up to the latest highs around 128.00 or even higher.
But beware of any possibility that may occur in the market and make the price fall again.
For the decline, the initial support level is at 125.800 which is seen to be tested before the price gives the next signal for a change in the bearish trend.
Further decline in the price will lead to the previous focus level around the support of 123,500.
