Among the currencies that are now in focus in the market is the Yen which is traded down to a 34-year low against the US dollar.
Concern dominates investors who are wary of the risk of intervention (intervention) by the central bank and the Japanese government following the continued fall of the country.
The Bank of Japan (BOJ) policy meeting will take place tomorrow (Friday) with interest rates expected to be kept at 0.10% after the central bank raised it for the first time last month from the negative level it has maintained since 2016.
A follow-up statement by governor Kazuo Ueda will be watched to see if there is a hint of intervention in the market.
Examining the price chart of the USD/JPY currency pair, the increase that took place on Wednesday yesterday has passed the 155.00 level which invites investor concern.
The trend remains bullish with the price movement still moving above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart.
The rising price pattern continued today (Thursday) with the latest high level reached at the beginning of the European session being around 155,700.
This is the highest level prices have recorded since 1990 and it is expected that there is still potential for further increases.
If there is no news from the BOJ to intervene, the market will be guided by the movement of the US dollar which is currently awaiting the publication of the economic growth data of the United States (US) in the New York session later tonight.
The price increase if continued can record the latest high level such as around 156.00 or 157.00.
However, it will be a warning sign for investors if the price drops back below the 155.00 level again.
The price decline is likely to start before the price goes to the previous concentration zone such as at 153.00 or 152.00.
