Investors saw a change in the price pattern on the chart of the USD/JPY currency pair this week which was seen to fail to continue the previous bullish trend.
If you look at the trading of the previous few weeks, the price increase has started since around May 12 and managed to reach a height of 140,900 at the beginning of this week.
The level is the highest this year and the highest since November 2022.
The decline that occurred on the US dollar during the week was seen to be influenced by several factors after the focus on the United States (US) debt ceiling agreement began to subside.
The focus shifting back to the Federal Reserve's (Fed) monetary policy also brought attention to key economic data published this week, particularly the US NFP jobs data.
Some Fed officials who are of the view that rate hikes need to be stopped for a while are driving the weak movement of the US dollar for now.
If the NFP data reading declines, it will reinforce expectations that monetary policy tightening is moving away from being an option.
Technically, the price movement is also seen circulating below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the USD/JPY chart, which indicates a bearish signal.
The decline that occurred yesterday has crossed the 139.00 level and continues trading in the Asian and European sessions today (Friday), prices remain slow around that area.
Further movements will depend on the market's reaction to the NFP data that will be published shortly.
A lower drop if continued will lead to the 137.00 zone which can be a 'pit stop' or a temporary price support zone.
If it breaks through lower, the target is to go to the 135.00 zone.
On the other hand, if there is a surge after the data is published, prices are likely to be able to regain the highs of the beginning of last week.
Or higher beyond it, the record high of the year will be recorded again with a target to go to 142.00.
