10-Week Highs Reached, But Price Stuck At ¥137.00


 The price movement on the chart of the USD/JPY currency pair is seen moving in a flat zone throughout this week after a spike at the end of last week to a recent 9-week high.

During the week, price gains were blocked at the resistance level of 137.00 which was also tested in yesterday's Thursday trading.

The US dollar failed to show a clear direction of movement this week when it fluctuated up and down influenced by changes in market sentiment.

On Thursday yesterday, the US dollar was seen trading strong again, possibly because the market is shifting its focus back to the policy of the central bank of the United States (US).

The Federal Reserve (Fed) is expected to remain on the path of tightening their monetary policy based on the latest published economic data.

Although the movement is slower this week, the price is still seen to be moving on the bullish trend that has been maintained in recent weeks.

Hovering below the 137.00 resistance zone, prices eased slightly to around 136.400 in early European session trade this afternoon (Friday).

Investors will start preparing for a bearish movement if the price starts to shrink below the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the USD/JPY chart.

The decline is seen to test the RBS (resistance become support) zone of 135.00 which will signal further price movement.

If the price manages to break through lower, it will further strengthen the expectation of a further drop in the price which is likely to reach around 134.00.

However, if the price manages to make a jump through the 137.00 resistance zone, the bullish trend will continue to be maintained and push the price to record the latest 11-week high.

The continued rise will target the 139.00 zone or higher if the US dollar maintains its dominance in the market.