The US dollar fell to a 7-month low compared to the Yen in continued trading today (Tuesday) witnessed the king of the currency still moving erratically in early 2023.
Even so, the US dollar at the opening of the market early last week managed to increase slightly compared to several other major currencies such as the Euro and Pound.
But compared to the Japanese Yen, the US dollar fails to show dominance when price movements are presented flat throughout the day.
This can be seen on the price chart for the USD/JPY currency pair which is slowly hovering around 130,700.
The price movement started differently in the Asian session this morning when the price increased slightly but was blocked by the Moving Average 50 (MA50) level on the 1 hour time frame on the USD/JPY chart before dropping again.
In fact, the price decline was more pronounced as it crossed the 130.00 level to record a recent low.
This pattern of bearish movement is seen to be continued after prices started to decline since trading at the end of last week again when closing 2022.
If the decline continues into the following sessions, the support level at 129.300 is seen to be broken before the price also heads to the target of 127.00.
The last time the price crossed this level was at the end of May 2022.
Meanwhile, for the scope for an increase if the price starts to change direction, the barrier is around 131.00 and 132.00 will be the foundation to be tested.
Henceforth, investors will assess cues for a change in the bullish trend before expecting the price to rise higher.
