The price movement on the chart of the safe-haven currency pair USD/JPY is seen to continue the bullish pattern that was displayed at the end of last week.
At the beginning of the week, prices moved flat first before the increase continued on Tuesday yesterday and today (Wednesday).
In the past week, the price is seen to have managed to bounce back past the resistance at the 135.00 zone.
Flattening at 136.00 throughout last Monday, the price surged again yesterday to a high of 136.600.
A surge occurred in yesterday's New York session after prices initially tested the 1-hour Moving Average 50 (MA50) support level on the USD/JPY chart.
Several factors in the market are seen to still be supporting the US dollar to strengthen until the end of this week's trading in addition to the debt ceiling issue in the United States (US).
In addition to the US 10-year treasury yield rising to a 2-week high, US retail sales data published yesterday also showed a positive improvement to April's reading.
Thus, investors witnessed the price increase continue today towards the concentration level of 137.00.
The height of 137,700 which was reached at the beginning of last May is likely to be a target for the price to overcome before a new high level will be recorded.
The target for a higher increase is towards around the 139.00 zone for the highest price record since November 2022.
However, if the price starts to show a downward pattern again, a drop below the MA50 support level will expect a bearish trend change for the price.
The 135.00 zone will return to be tested again and if broken, the decline will continue towards the support zone at 133.700.
