If we examine the price movement on the chart of the USD/JPY currency pair at the beginning of 2024, the first week has seen a different change in price direction compared to the end of 2023.
Since November, the bearish movement of prices continued for 7 consecutive weeks from the highest level of 151.900 until reaching 140.300 at the end of December.
Last week which was the opening of 2024 saw the price not continue the downward pattern, but instead began to display a surge again up to the height of 146.00.
This situation shows the movement of the US dollar currency which is recovering against the Yen and signals a change of trend for January.
This is due to the price movement starting to move again above the Moving Average 50 (MA50) support line on the 1-hour time frame on the USD/JPY chart.
However, continuing to trade at the beginning of this week, the price dropped slightly until the decline touched the 143,500 level as of this morning's Asian trading session (Tuesday).
Investors are cautious again as prices start to move below the MA50 barrier which could be an early indication that the bearish trend at the end of 2023 is likely to continue again.
The 143,500 level is seen as current support with prices slightly up on the move in the early European session today.
If the upswing succeeds in re-crossing the MA50 barrier, the resistance zone at 146.00 will again be a target to test.
A break above that zone will see the price hit its latest 5-week high towards the next target at 147.00.
However, if the price drops below the 143,500 level, the bearish movement will continue with the risk of the price falling to around 140,500.
