Interesting price movements shown in the past week on the chart of the currency pair USD/JPY, when the pattern of changes occurred at the beginning of the week and at the end of the week.
If at the beginning of last week the price showed a decrease, but there was a re-increase in the price towards the close of trading at the end of the week.
The situation is driven by changes in the US dollar currency which is influenced by market sentiment around the expectation of setting monetary policy by the Federal Reserve (Fed) with economic data being monitored.
Most recently, the United States (US) NFP employment data report for the month of March was published last Friday, featuring relatively positive readings.
This gave a strengthening reaction displayed by the US dollar before slowly ending trading in the last session last week.
Meanwhile, Yen investors will be wary of the currency which is weakening after the post of central bank governor has changed hands, now held by Kazuo Ueda.
Markets are cautiously waiting to gauge if there is speculation for a new policy change in Japan.
The yen traded weaker against the US dollar at the start of the week prompting continued gains on the USD/JPY chart.
The price jumped from the level of 132.00 to around 132.800 towards the opening of the European session this afternoon.
The price increase if continued is seen to go towards the resistance zone at 133.600 before the next target is focused around 135.00.
However, if the price returns to display a dive back down to the 132.00 level which now serves as current support, a bearish signal will be evaluated.
The price could reach up to around 130.600 to test that important support zone that managed to bounce the price on last week's decline.
If the penetration is lower, the price is seen to be heading around 129.800 to 129.300 and an attractive price reaction will be expected around that.
