With a slow price pattern, the chart of the USD/JPY currency pair today (Thursday) has managed to record a new 5-week high after surpassing the level reached last week.
Although the US dollar traded mixed and somewhat gloomy this week, it still managed to maintain its performance against the Yen currency.
Even so, investors are being wary of the risk of volatile price movements ahead of the release of United States (US) inflation data in the New York session tonight.
The latest inflation forecast for the month of July has increased to 3.3% compared to the 3.0% level that has been successfully recorded in the previous downward trend.
If observed on the USD/JPY chart since the beginning of the week, a bullish pattern was successfully displayed after the price started at the opening of the beginning of the week in the 142.00 zone.
It has been a bullish signal at the beginning of the week when the price made a rise above the Moving Average 50 (MA50) barrier on the 1-hour time frame on the chart, thus reversing the direction of the trend at the end of the previous week.
The increase that continued on Tuesday and Wednesday yesterday was seen to be facing an important resistance at the 143.500 zone, but eventually managed to be overcome even at a slow tempo.
The slow gains continued in the Asian session this morning and finally surpassed last week's highs at 143,900.
In the European session, the price is seen to try to break the 144.00 level before the focus will shift to higher levels around the 145.00 zone to reach.
Next, the 146.00 zone will be the price target with the bullish movement maintained for the recent record highs.
However, be aware of the risk of a fall in prices that can occur as a result of the reaction to published inflation data.
A further drop below the 143.500 level would expect the price to head back to the support zone at the beginning of the week, 142.00.
If it falls lower, the price could reach around 140.00 or lower with a price trend change signal being evaluated.
