Despite showing a bullish pattern, the price movement on the USD/JPY safe-haven currency pair chart showed weak momentum.
The US dollar was supported by several factors to strengthen, but failed to perform well against the Yen with the price moving flat on the USD/JPY chart throughout the day yesterday (Wednesday).
Current risky market sentiment will typically have a positive impact for both the US dollar and the Yen as safe-haven currencies. Still, central bank fundamental factors are more in favor of the US dollar with hawkish signals by the Federal Reserve (Fed) over the dovish Bank of Japan (BOJ).
The minutes of the FOMC meeting published earlier this morning gave indications for policy tightening by the Fed as discussed at the last meeting, expected to continue to drive the US dollar to soar on the USD/JPY chart higher over the weekend.
The price movement is still in a bullish trend with the price still supported by the Moving Average 50 (MA50) support level on the price movement in the 1 hour timeframe.
Investors would like to see if further price increases are able to retest the highs reached on the surge at the beginning of last week around 125.00.
If managed to pass that level, the level of 125.800 is seen to be the next resistance that will be tested after the last time tested was in May 2015.
Reaching that level while recording the latest price level for a trading period of 7 years.
On the other hand, if yesterday's horizontal movement starts to show a decline today, the price moving below the MA50 support level will be an early signal for a change in the bearish trend.
The decline is seen to test the RBS (resistance become support) zone at 121.500 which was the price support level last week.
