The price chart of the USD/JPY currency pair started to show a price plunge in yesterday's Wednesday trading as it hovered near the 162.00 level which was the highest record since 1986.
Does this indicate that the Japanese authorities have intervened in the market?
Not yet, but investors will continue to remain vigilant for that possibility which could happen at any moment.
The relatively significant drop in prices yesterday was due to the depreciation of the US dollar when some economic data from the United States (US) was published with declining readings.
In addition to the lackluster growth in the private sector employment, the outlook for the US service sector also recorded a significant contraction.
However, the fall of the US dollar was successfully limited by the minutes of the FOMC meeting published with the hawkish tone of the Federal Reserve (Fed) still maintained.
The bullish pattern on the USD/JPY chart is starting to show slow momentum with resistance being seen in the 162.00 zone for now.
In the price movement in the 1-hour time frame of the chart, the price has started to move below the Moving Average 50 (MA50) line which gives an early sign as a bearish signal.
If after this the price decline starts, the initial concentration of the price is seen in the 160.00 zone which was previously a resistance in the trade last June before being broken through.
For further declines to continue, the price could likely reach around 158.00.
However, if the momentum of the price surge is successfully gathered again, the price will break through the 162.00 level before continuing to break the 38-year high record.
