There has started to be a change in price direction on the USD/JPY currency pair chart which has sparked controversy since last week's trading.
This is due to the significant strengthening of the Yen currency which is suspected of intervention by the Japanese authorities in the market, but until this week there is still no explanation given regarding the situation.
Last weekend, United States (US) Treasury Secretary Janet Yellen also touched on the matter, but she did not want to comment on whether an 'intervention' was done or not.
As Japan's top currency diplomat, Masato Kanda, who is seen as an individual with the authority to direct the intervention of the Japanese central bank, however, declined to comment.
Similarly, other top Japanese officials including the Chief Secretary of the Japanese Cabinet, Yoshimasa Hayashi who also remained silent.
The significant strengthening of the Yen in the past week is seen starting to fade as the currency of the rising sun has become less aggressive since the beginning of the week.
Last week, the surge in prices that was displayed at the beginning of the week reached 160.00 which became the highest record since 1990.
Then there was an aggressive price plunge until on Friday, the price reached the level of 151,900.
The price started to show a slow increase this week with as of today (Wednesday), the 155.00 level was successfully reached again.
Price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the USD/JPY chart gives a positive signal for a bullish pattern to occur.
However, the risk of further price falls remains and investors remain cautious.
If the price manages to maintain the recovery, the price will continue its climb to the concentration level at 158.00 before the 160.00 zone will again be the target to reach.
However, if the price starts to show signs of falling again, investors will observe a decline in the price that will start to move below the 155.00 level and then decline past the MA50 line.
Next, a further decline would be expected to reach back to last week's support level at 151.900.
