Significant price declines occurred on the chart of the USD/JPY currency pair this week until the price dropped to a recent 4-week low.
The continued depreciation of the US dollar since the beginning of the week prompted the US dollar to trade weaker against the Yen despite the lack of catalyst against the Japanese currency.
Concerns over the performance of the US dollar continue to rise with the expectation that the turbulence will continue towards the end of the week as investors await the release of the US NFP jobs data report on Friday.
However, first putting pressure on the US dollar yesterday was a speech by Federal Reserve (Fed) Chairman Jerome Powell in Washington DC regarding the direction of the central bank's monetary policy.
According to Powell, the Fed is on track to cut interest rates this year.
Although there was no indication of how long the action would take, it was enough to trigger a massive sell-off in US dollar holdings.
On the USD/JPY chart, the price is seen to decline from the beginning of the week below the critical level of 150.00 and overcome the level reached last week.
After reaching the level of 149.100 in the New York session, the price continued to decline lower today with the current level recorded as of the beginning of the European session this evening being around 128.200.
The momentum displayed shows that the price will continue to decline lower in the following sessions.
The price target is expected to reach around 127.00 and it is not impossible to go lower than that.
For the expected price increase again, the price can likely recover towards the 150.00 zone.
The zone has the potential to be an obstacle for the price with an interesting reaction around it will be expected.
