The US dollar showed renewed strength on Wednesday after a gloomy start to the week with volatile market sentiment as the focus turned to corporate earnings reports.
The strengthening of the currency king appeared to add to the pressure as the Japanese Yen traded at a 32-year low.
While the US dollar weakened at the beginning of the week and gave room for other major currencies in the market to rise, the opposite happened to the Yen when it still failed to recover after showing poor performance for several weeks.
This has caused concern to investors for the expected probability that the central bank or the Japanese government will act to intervene in the financial market.
On September 22, the market was shocked by the intervention of the Japanese government which saw the Yen strengthen again against the US dollar. But that situation didn't last long as the Yen weakened again in the following weeks' trading.
If you look at the price movement on the chart of the USD/JPY currency pair, the price has plunged on September 22 from the level of 145,900.
However, 3 weeks later, the price increase has managed to pass the high level which is on Wednesday last week.
The bullish pattern continued into the trade heading into the end of the week as concerns continued to surround investors.
The price remains above the Moving Average 50 (MA50) support level on the 1-hour time frame on the USD/JPY chart for a bullish trend signal.
As expected by analysts, the concentration level at the height of 150.00 is getting close to being reached in today's trading, but the tempo of price movement is seen to be slow.
It is not impossible for the price to continue climbing higher and break through the 150.00 level to continue hunting for the latest record high since 1990.
However, be careful if the Japanese intervention happens again, the price can plunge to the level of 147.00 or the concentration level of last month at 145.900.
