Surprise at the beginning of the week when investors saw the price opening on the USD/JPY currency pair chart.
This is due to the difference in the price that opened lower compared to the closing price at a higher level in the last session last week.
After closing at a 10-month high around 147,800, prices opened lower at 146,800 in the Asian session this morning.
The yen began to show strengthening at the beginning of the week after reports that there will be changes in the monetary policy of the central bank of Japan (Japan) led by Kazuo Ueda.
Signals of a move away from the easing phase have pushed 10-year Japanese government bond (JGB) yields to their highest level since 2014.
Thus, prices began to show a change in the downward pattern on the USD/JPY chart, with the strengthening of the Yen evident against the US dollar until trading continued into the European session this afternoon.
The price movement is below the Moving Average 50 (MA50) barrier on the 1-hour time frame on the USD/JPY chart, giving a bearish signal and as of the beginning of the European session, the price has reached 146.00.
If the situation continues, the price will continue to drop lower and will then test the 144,500 zone which was the support zone in August trading.
If it breaks lower, the price could head towards the latest target level at 143,500 to record a new 5-week low.
But if the surge happens again, the price will test the 147.00 zone which is seen as the nearest resistance for the price.
Next, the MA50 barrier will try to be broken before the price returns to signal to resume the bullish movement of last week.
The latest high will be recorded after the resistance zone reached last week at 147,800 was successfully overcome.
