Compared to last week's downward price movement, the chart of the USD/JPY currency pair this week is seen to display more horizontal movement as the market awaits the release of important economic data.
The US dollar and Yen currencies were seen to be trading fairly evenly at the beginning of the week, but the situation is expected to change after the inflation data of the United States (US) is published in the New York session shortly.
If you look at last week's price comparison, the price has plummeted from a high of 137,700 to reach 133,500.
However, after increasing again slightly, the price movement since the beginning of the week until today (Wednesday) is flat in the 135,000 zone.
Investors see early signs of bullish movement with prices moving above the Moving Average 50 (MA50) support level on the 1-hour time frame on the USD/JPY chart, but US inflation data is awaited first.
If the price is successfully driven up away from the 135,000 zone, the increase is likely to reach the 137,000 zone again like the previous week.
The 137,700 high level is waiting to be challenged again by the price before the latest record high is successfully recorded again.
But on the other hand, if the price plunges below the 135.00 zone and breaks through the MA50 support level, that will be an early indication for the price to continue the bearish movement.
The decline will be seen again towards the support zone reached last week at 133.500.
If the zone fails to bounce back in price, the decline will continue to a new low with a target heading up to 132,000.
