The price movement on the chart of the USD/JPY currency pair for this week is seen to display a bearish trend after the price failed to maintain the previous increase.
Last week the price showed a horizontal movement with a height of around 157.700 has been successfully reached.
However, starting at the beginning of this week the price has plunged significantly when the US dollar traded weaker against the Yen until the price dropped below the 155.00 level.
But on Wednesday's trading yesterday, the price showed a recovery to increase to the level of 156.500.
The price also crossed the Moving Average 50 (MA50) barrier line on the 1-hour time frame on the USD/JPY chart, signaling the potential for a further uptrend.
The yen failed to maintain its strength against the US dollar, which is still moving erratically, following Bank of Japan (BOJ) policy board member Toyoaki Nakamura's statement that the current move to raise interest rates is inappropriate.
In addition, the Japanese government's 10-year bond yield also fell below 1% for the first time in 2 weeks.
Price movements on the USD/JPY chart slightly decreased to 155.400 in the Asian session this morning (Thursday) but still hovered above the MA50 support line.
If the price increase continues successfully, overcoming the high level reached yesterday would expect the price to go back to last week's high zone around 157.700.
However, if the price decline occurs, the 155.00 zone will be tested before the decline continues to a lower level.
Next, the focus zone that the price will target if the decline continues is likely to be at 153.700 which was reached in mid-May trading last year.
