Market sentiment, which is assessed to remain risky towards the end of the week, is seen to continue to give an advantage to safe-haven currency trading in the market.
But against the rising Yen and Swiss franc, the depreciating US dollar, on the other hand, dampened investors' expectations for a strengthening king of the currency at the close of trading this week.
If we look at the price movement on the chart of the USD/JPY currency pair, the price shows a bearish pattern since last Wednesday after moving horizontally at the beginning of the week.
Last Wednesday, the price was seen to have made a plunge from the horizontal zone of the price of 129.300 to the support level around 128.00.
The price showed a bearish signal when moving below the Moving Average 50 (MA50) barrier level after the rise that took place in the Asian session on Thursday also failed to pass the barrier.
The decline continued into the beginning of the New York session yesterday reaching the support zone of 127.00 to record the latest 3 -week low.
The price increase that continued in Friday's trading was seen testing the resistance of the 128.00 zone which still has not given any sign of a change in the price trend.
If the price continues to decline, the 127.00 support zone will be tested again and it is likely that the price can break lower.
For expectations for a continued decline, the zone around 125.800 is seen to be the price target.
However, if the price manages to jump and pass the level of 128.00 and also the MA50 barrier, investors will evaluate as an early signal for a change in the bullish trend of the price again.
The price increase will head to the focus resistance zone at the beginning of this week which is at 129.300 with a higher target if the rise continues to be heading back to the 131.00 zone.
