Silently, investors are increasingly witnessing upward price movements on the USD/JPY currency pair chart since the opening of trading in 2024 which has entered its third week.
The price increase that was displayed until the beginning of this week is seen to be heading back to the critical level of ¥150.00 that the market has often observed before.
This is due to the price reaction around that level in the previous trade triggering uncertainty following the central bank and the Japanese government acting to intervene directly in the market to balance the current value of the Yen.
If you look back at the price movement since November last year, the price has made a decline from its highest peak level of 151,900 and the price continued to fall until the end of December reaching 140,300.
However, the opening of trading at the beginning of the year for January 2024 saw a change in the trend and the price was displayed with an increase to the 146.00 zone.
During this week, the price made another increase past the 146.00 level and passed yesterday's high of 147.00.
The price increase pattern has not yet ended when today (Wednesday), the increase is still continuing and as of this evening's European session, the price has reached a high level of around 147,800.
This is the highest price level for a 7-week trading period which also surpassed last December's level.
With the current factors in the market which are now seen to be in favor of the US dollar, the price has the potential to continue its ascent after this.
The target is to reach again the important level of 150.00 and surely investors will be cautiously waiting for the price reaction around that.
However, if the decline occurs again, the 146.00 zone is seen as RBS (resistance becomes support) which will be tested before the indication for the further direction of the price will be observed.
If the breakout price is lower, the risk for a price drop will increase with the price target to return to around 143.500 which was tested in the previous week's trading.
