Until the European session today (Tuesday), there is still no explanation given by the central bank of Japan (BOJ) regarding the drastic movement that occurred on the Yen currency yesterday.
Japan's top currency diplomat, Masato Kanda, declined to comment on the widely expected intervention.
After several weeks of investors watching carefully, there was finally a big price move on the chart of the USD/JPY currency pair at the opening of the week yesterday.
If observed the price has maintained a continuous rising pattern until last week it reached the highest level around 158.400.
Continuing trading on Monday yesterday, prices climbed higher in the Asian session reaching a 34-year high above the 160.00 level.
Then, the price suddenly fell to around 155.00 until trading continued in the European session.
Price movements remained brisk as the market awaited any clarification from the Japanese authorities regarding the situation.
The price has rebounded from the 155.00 level with an increase approaching the 157.00 level.
That level has yet to be crossed until this afternoon's European session and the price is also seen being blocked by the Moving Average 50 (MA50) line on the 1-hour time frame on the chart showing a bearish signal.
It is likely that the price will decline again to test the level of 155.00 which was reached yesterday and the price reaction will be observed.
If it breaks lower, a strengthening Yen will push the price lower towards the 152.00 level and further to the previously important 150.00 zone.
On the other hand if the decline in price fails to happen again, the price is able to rise again to reach yesterday's high level.
The price's recent record high since 1990 is likely to be broken again by the price.
