Hindered At ¥137.00, Can USD/JPY Maintain Bullish Trend?


 As observed on the chart of the USD/JPY currency pair over the past week, the price showed a sideways movement pattern between the 137.00-135.00 range.

As the US dollar showed strengthening, the price made an increase until it was blocked at the 137.00 resistance zone.

Meanwhile, when the Yen is better compared to the US dollar, it sees a price drop towards the 135.00 zone, which is a support for the price.

The RBS zone (resistance become support) as long as it has not been penetrated will expect the price to still have the potential to continue the bullish trend movement.

For that to happen, the price must break above the resistance of 137.00 which is currently the highest price reached for the 10-week trading period.

However, the decline of the US dollar at the end of the week saw the price that had reached 137.00 fall back and close the last trading session around 135.800.

The decline continued at the opening of the Asian session this morning, with prices moving below the 1-hour Moving Average 50 (MA50) barrier on the USD/JPY chart giving a bearish indication.

If the rise succeeds in crossing the resistance of 137.00, the price will record the latest high again with the target to go up to the level of 139.00.

But if the price plunges through the RBS 135.00 zone, investors begin to prepare for a change in the price trend with the expectation of a lower decline.

The initial decline is seen to be around 134.00 before extending further down to around 132.00 if the US dollar is traded too weak.

Also monitor the current market sentiment that can affect the trading of this safe-haven currency pair.