The strengthening US dollar continued to lead the safe-haven currency group with the Yen’s movement earlier this week remaining gloomy.
Comments by Federal Reserve (Fed) Chairman Jerome Powell at yesterday’s annual economic conference event remained rated hawkish for a description of the rate hike decision at last week’s FOMC meeting.
The US dollar was also supported by the 10 -year US treasury yield surge factor which reached a new high of around 2.30%.
This situation continues to maintain the bullish pattern on the chart of the USD/JPY currency pair which continued to climb in early trading this week.
The yen is also expected to move weaker after Japan’s central bank maintained a loose policy pattern at last weekend’s meeting.
The price movement on Monday was slightly flat, but more aggressive in trading that continued the Asian session this morning (Tuesday) with a jump to the 120.00 level.
The rise did not stop there as the price continued its surge until entering the beginning of the European session reaching the 120.500 level which was the focus of market analysts before.
The price movement is still seen moving in a bullish trend supported by the Moving Average 50 (MA50) support level on the 1 -hour time frame on the USD/JPY chart.
With the momentum displayed, investors can assume the price has not yet stopped to continue rising and record the latest highs.
The target for the price’s continued rise is at the high of 121.500 which is the resistance level in January 2016 trading.
If the price rises above the 121,500 level, the price will record the latest 7 -year high, the highest since 2015.
Still, be wary if prices start to show a recurrence it is likely that the US dollar will start to lose its strengthening momentum.
The zone target for the decline is seen at 118.00 before continuing the lower decline towards around 116.300.
