A change in the direction of price movement on the chart of the USD/JPY currency pair was exhibited this week which bounced back to make an increase again.
In addition to the US dollar currency being watched over the past few weeks as important economic data comes into focus, investors are also keeping a watchful eye on the yen's volatile movements.
Markets are currently digesting news of the central bank of Japan's (BOJ) plan to end loose monetary policy by 2024 under new governor Kazuo Ueda.
Investors remain cautious with the risk of volatile Yen movement as it has been throughout 2023.
On the USD/JPY chart, a bearish pattern has been in place over the past week and continued at the early opening of this week seeing prices close to the 147.00 level.
However, the price bounced back until trading resumed on Wednesday yesterday almost reaching the 150.00 concentration level again.
The increase reached around 149,700 before the price began to retreat again to resume movement in the Asian session this morning (Thursday).
Opening the European session, the price is seen hovering around 149.00 and is still above the Moving Average 50 (MA50) support line on the 1-hour time frame on the USD/JPY chart to remain with a bullish signal.
The increase if it continues again is seen to test the important zone of 150.00 which was previously a critical zone that could trigger the intervention of the central bank and the Japanese government in the market.
However, if it succeeds in breaking through, the price is likely to continue its rise to the height reached before, which is at 151.90.
On the other hand, if the price falls below the MA50 support level, this will be an indication of a bearish movement for the price.
The decline will continue towards the 147.00 support zone and the price reaction around that will be observed for further movement indicators.
