USD/JPY 'Pillar', Hits 9-Week High!


 Most of the major currencies in the market suffered losses at the close of trade last week as the US dollar maintained its strength.

Among them, the Yen currency sank to a 9-week low against the US dollar.

The US dollar is expected to continue to strengthen this week with expectations that the Federal Reserve (Fed) will remain on the path of monetary policy tightening.

Expectations for the US dollar to weaken slightly at the end of last week were dashed as continued strengthening was supported by the publication of strong US consumer spending data.

While the Yen currency will continue to be traded cautiously while investors continue to observe the character of the candidate for the new central bank Governor, Kazuo Ueda in planning monetary policy.

If observed on the price chart of the USD/JPY currency pair, the price has managed to record an increase to the latest 9-week high reaching the level of 136,500.

This follows a successful surge past the resistance zone at 135.00 which was tested several times over the past week.

The price movement that resumed trading at the beginning of this week remained flat at the highest level reached at the end of last week.

The price is seen to remain moving in a bullish trend that is above the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the USD/JPY chart.

The rise is expected to continue with the next resistance target to be tested at the height of 137.00.

Breaking through that resistance will push the price to record a recent 13-week high towards a recent target at around 139,300.

As for expectations for price declines, the 135.00 zone will return to focus and will likely serve as the latest support for prices.

If it fails, the price could break lower towards around 133.700 or further to the previous concentration zone at 132.00.