The price chart of the USD/JPY currency pair is seen to have failed to continue rising higher when it stalled below the 149.00 level at the beginning of the week.
Significant price movements were witnessed last week following the market's reaction to the United States (US) NFP employment data report published in support of the strengthening of the US dollar.
The lowest level was reached on Thursday and touched 145.900 before the surge on Friday passed the level of 148.00.
The price movement that resumed trading at the beginning of the week was seen to lose momentum when the price leveled below the 149.00 zone.
The price direction changed on Tuesday yesterday when a bearish pattern began to appear towards the 148.00 zone again.
The depreciation of the US dollar yesterday is seen to have given room for other major currencies in the market to recover including the Yen.
However, the Yen failed to rise higher as household expenditure and average wage data published in the Asian session just now showed a gloomy reading.
Therefore, the price drop on the USD/JPY chart did not continue, instead the price slowed down in the 148.00 zone until trading resumed in the European session.
However, analysts still see it as a bearish movement signal for the price that remains below the Moving Average 50 (MA50) obstacle line on the 1-hour time frame on the chart.
The expectation for a price drop if it continues after this is towards around 147.00 for investors to observe the reaction that will be displayed in the price.
If it still breaks down, the decline will continue to the 145,900 level, which is the price support level tested last week.
However, if the price increase occurs again, the MA50 barrier will be crossed before the target price breaks through the 149.00 resistance.
Next, a higher increase will reach the target of 150.00 which is an important zone also observed by the central bank.
