The US dollar managed to continue its strengthening this week, making it a new high against the Yen, breaking the highest price record since 1998.
Positive investors expect the Federal Reserve (Fed) to continue its aggressive interest rate hike for the third time by 75 points at the FOMC meeting on September 22 to control inflation which is still at a high level.
The focus in the New York session yesterday was on the release of the ISM survey data for the services sector in the United States (US) for August which was stronger than expected, which was also the trigger for the strengthening of the US dollar which moved dismally at the opening of trading earlier in the week. .
Meanwhile, the Japanese Yen continued to receive pressure until it fell to a lower level when the Bank of Japan (BOJ) committed to maintaining low interest rates.
BOJ Governor Haruhiko Kuroda recently expressed the need to keep policy very loose, arguing that the external factors driving domestic inflation higher will begin to diminish next year.
Observing the price movement on the chart of the currency pair USD/JPY, the price has shown an energetic surge in yesterday's Tuesday trading until it reached the latest high level in the New York session around 143.00 creating the highest record reached for a period of 24 years.
The surprise continued to be exhibited in the price when the surge momentum continued today (Wednesday) until the highest level reached so far in the European session reached 144,300.
Since last week's trading, the price has remained above the Moving Average 50 (MA50) support level on the 1-hour time frame on the USD/JPY chart with the bullish trend continuing into this week.
If the price increase is still maintained, it is possible that the price could reach a height of around 147.00, which was the resistance zone in the August 1998 trade.
However, if the price drops again, the 139.300 level which was the resistance level before, is likely to be expected to be the latest support level for the price after the drop passed the 140.500 zone.
And if the price still continues to decline lower, the zone around 137.00 will be seen as a target to be tested before investors assess the signal for a change in the price trend again.
