The US dollar failed to sustain the strengthening after the release of the NFP data at the end of last week saw a jump of almost 300 pips before the price moved flat in the early trading session of the week on the chart of the USD/JPY price pair.
Higher-than-expected US NFP jobs growth in July, along with a declining unemployment rate, sent the currency king surging in late trading last week.
Investors' focus will now be directed to the release of US inflation data which is expected to drop to a lower level than in June.
After that, investors expect the Federal Reserve (Fed) to make an aggressive interest rate hike for the third time at the latest FOMC meeting for an expected increase of 75 basis points.
Meanwhile, the Yen currency is seen to be still maintaining a gloomy movement with uncertain market sentiment.
Pay attention to the price movement on the USD/JPY chart, at the close of trading last week, the price was seen to have managed to jump to the 135,000 resistance zone after the publication of the US NFP employment data which boosted the value of the US dollar.
Continuing the trading at the beginning of the week, the price was seen to be flat at the 135,000 resistance zone throughout Monday's trading yesterday, but still the support level of the Moving Average 50 (MA50) on the 1-hour time frame on the USD/JPY chart prevented the price from falling.
It is likely that prices will continue to rise higher from the 135.00 zone if the US dollar manages to strengthen again ahead of the US inflation data.
A further rise in price will lead to the resistance zone at 137,000 to record a recent 2-week high.
Whereas if the price makes a further decline from the 135.00 zone, a drop below the MA50 support level will signal a change in the bearish trend for the expectation of a lower price decline.
A further drop in price is seen to reach the support level at 132,000 before continuing to decline to the lowest level reached in early August around 130,500.
