The price movement of the USD/JPY safe-haven currency pair chart moved horizontally throughout the day yesterday starting trading earlier this week.
The price is seen ‘resting’ in the 135.00 zone after a spike occurred at the end of last week and re -testing the resistance zone.
Initially the price made a decline first following the reaction of the results of the FOMC meeting which saw the US dollar weaken and push the price to plunge below the 132.00 zone.
But prices rebounded from the zone on Friday with the decision of the Japanese central bank (BOJ) meeting keeping interest rates and loose monetary policy signals keeping the Yen further weak.
The price that rose back to the 135.00 zone is also seen to pass the Moving Average 50 (MA50) barrier in the 1 -hour time frame to return to give an indication of a bullish movement.
Continuing up to the Asian session this morning (Tuesday), the price is still moving slowly and flat at the 135.00 zone awaiting a signal for the direction of further price movement.
This 135.00 zone is the height reached last week, with the highest price record since 2002!
The record will be broken again this week if the price manages to continue rising higher with the next target to reach around 137.00.
On the other hand, if the fixed price fails to break the 135.00 resistance zone as was the case last week, it is likely that investors will see a decline in the price again this week from that zone.
The decline will return to the support zone at 132.00 again, which is the zone touched by the price reaction during the FOMC meeting.
For the lower decline to continue the bearish movement of the price, the previous focus zones such as at 129.300 and 128.000 will return to the price targets.
