Ahead of the central bank of Japan's policy meeting in the Asian session tomorrow (Tuesday), investors are monitoring the yen's current movements earlier in the week.
The currency of the rising sun has traded weakly over the past week as the US dollar has returned to a strengthening pace driven by rising inflation data readings.
In addition to waiting for the results of interest rate cuts after the FOMC meeting, investors are also waiting for indications regarding the monetary policy shift by the Bank of Japan (BOJ) which was announced earlier.
Opening the week earlier in the Asian session this morning, the BOJ has announced they will do unscheduled bond purchases, offering to buy up to ¥3 million of Japanese government bonds in a deal that began on Tuesday and ends on Thursday.
The movement of the Yen currency is seen not to react to the announcement while waiting for the BOJ meeting tomorrow.
Examining the price movement on the chart of the currency pair USD/JPY, the bullish pattern was successfully exhibited again last week which is different from the pattern of the previous week.
The price advance has managed to break through the important zone around 148.700 before reaching the high of the week at the end of the last session around 149.150.
A slow rise was displayed in the Asian session this morning touching the 149.300 level before retreating slightly.
The price movement that is still above the Moving Average 50 (MA50) support line on the 1-hour time frame on the USD/JPY chart suggests that the bullish pattern will continue.
The next rise is expected to be towards the focus zone at 150.00 and the price reaction around that will be observed.
If the price breaks higher, the next target for the price is at the resistance of 150.800.
But if the price changes to make a decline again, passing the MA50 support will expect a lower fall for the price.
It is likely that the price could return to around the 147.00 level which was the focus of the early trading last week.
