Are there any signs of a price trend change on the USD/JPY currency pair chart this week?
If observed, last week's trading saw a bullish pattern throughout the week with gains to recent highs each day.
The peak level was reached last Friday which was at 135.00, recording an 8-week high.
However, unlike the opening movement at the beginning of the week yesterday, the price did not continue the rising pattern but instead leveled at the 134.00 zone.
Analysts had expected the slow movement to occur yesterday due to the gloom of the market in conjunction with public holidays in the United States (US).
Even so, market expectations are still inclined towards the strengthening of the US dollar as the Federal Reserve (Fed) is seen to still need to maintain monetary policy tightening.
If the US dollar is strong again, the price will continue to surge last week with the latest resistance level of 135.00 will be tested and will be broken.
After successfully breaking through it, the rise will continue again to record the next latest high.
The target is at the height of 137.00 if the price continues the bullish trend.
On the other hand, if the price plunges below the 134.00 zone, the decline is seen to continue to around 132.00, which was the previous price focus zone.
The price reaction in the zone will determine the direction of further price movement whether it plunges lower or bounces back to increase again.
