The price movement on the chart of the USD/JPY currency pair last Friday showed a downward pattern again when the previous day's rise failed to be maintained.
Has the Yen strengthened again against the US dollar in the market?
Despite ending last week's trading on a gloomy note, analysts still believe there is a positive potential for the US dollar to strengthen this week after digesting hawkish comments by Federal Reserve (Fed) Chairman Jerome Powell at the FOMC meeting.
While the Yen will be driven by the decision of the Bank of Japan (BOJ) policy meeting on Tuesday tomorrow.
Expected to weaken, the BOJ is likely to reiterate their loose monetary policy stance and interest rates are also forecast to remain at -0.10%.
Investors will also monitor the financial market sentiment at the beginning of this week which could affect the movement of the two safe-haven currencies.
Starting the week's trading with a dovish signal, the price on the USD/JPY chart is below the Moving Average 50 (MA50) barrier level on the 1-hour time frame of the chart hovering around 136.00.
The support level at 135.00 looks set to be tested if the decline continues after the zone managed to hold off lower last week.
However, if the price continues to penetrate the zone, a further drop in price is seen to be around 133.700 before heading to the concentration zone at 132.00.
On the other hand, if there is a rebound in prices, the resistance that will be reached is at the level of 137.00 and the MA50 barrier.
After examining the bullish trend change, investors will next expect a higher rise to the previous target level which is around 139,300.
