The focus of investors on Wednesday's trading yesterday was on the movement of the value of the Yen currency which suffered a severe fall.
The yen fell against the US dollar to its lowest level since 1986, surpassing the peak price level recorded in 1990.
This situation has raised concerns and increased speculation among investors that the Japanese authorities will act to intervene in the market.
At the end of last April, there was a sudden drastic strengthening of the Yen and analysts saw direct intervention, but the government and the central bank of Japan kept quiet.
However, continued trading in May and June saw the Yen depreciate again and yesterday a new record was created again.
Examining the chart of the USD/JPY currency pair, the price has made a jump yesterday past the resistance zone of 160.00 which is the highest zone reached by the price at the end of last April which became the highest price record since 1990.
Now the price that surged higher has reached a new high at 160.800 with the bullish movement pattern of the price still continuing seeing that the price remains above the Moving Average 50 (MA50) support line on the 1-hour time frame of the chart.
A slight drop in prices took place in the Asian session today (Thursday), but it is not impossible for prices to continue to record new records with the expectation that the US dollar will maintain its strengthening.
It is likely that the latest target is around 162.00 which can be reached if the current market situation does not change.
However, watch out for intervention in the market in an attempt to reverse the fall of the Yen.
A dip below the 160.00 level could drag the price lower again to around 158.200.
