Among the highlights of this week's trading is the price chart of the USD/JPY pair which has shown a rise to its latest 20 -year high!
The factors driving this are seen based on the differences in the views of the two central banks, where the Federal Reserve (Fed) is more aggressive in tightening policy while the Bank of Japan (BOJ) is committed to maintaining a loose policy.
Thus, the US dollar is seen moving stronger against the Yen to continue to maintain the bullish pattern of prices over the past few weeks on the USD/JPY chart.
If examined, the price flattened at the 127.00 zone at the end of last May before displaying a signal for a continued bullish trend in early June trading.
Until the resumption of this week's trading, the price continues to record its latest highs after passing some obstacles such as the 129.300 and 132.00 zones.
The price movement above the support level of Moving Average 50 (MA50) on the 1 -hour time frame still does not give any indication for the price to change direction.
As of yesterday's trading, the price has managed to record its latest high around the 134.00 zone although a slight decline is seen in the Asian session today.
However, the rise in prices is still expected to continue to continue the bullish trend before investors will begin to be cautious ahead of the release of US inflation data on Friday.
The next bullish target is to test the high zone at 135.00 which is the resistance that the price tested in early 2002.
But beware if the price that fails to pass the resistance zone starts to show a reaction to make a decline again.
After the change in price direction, the initial decline is seen to be heading to the level around 132.00 before testing the 131.00 zone.
And the continued decline will lead to the expected level around 129.300 for the price to show a clearer bearish trend movement.
