USD/JPY Warns Early Signs of Trend Reversal

<p>&nbsp;The Yen at the end of the week showed a slight recovery compared to the gloomy movement from the beginning of the week.</p><p><br /></p><p>Analysts see the risk factor of market sentiment as having contributed to the Yen's recovery as a safe-haven currency.</p><p><br /></p><p>Concerns over global markets have been fueled by unrest in China with the real estate crisis now increasing the risk.</p><p><br /></p><p>However, investors remain wary of Yen trading following rumors about the central bank's intervention into the market.</p><p><br /></p><p>As happened last February, the Bank of Japan (BOJ) has acted to intervene directly if the Yen is increasingly in a critical situation.</p><p><br /></p><p>Looking at the chart of the USD/JPY currency pair, a bullish pattern has been displayed for two consecutive weeks until the price managed to break through the 146.00 level this week.</p><p><br /></p><p>Previously, the attraction of the US dollar, which is also a safe-haven currency, overcame the Yen, which was shrouded in uncertainty.</p><p><br /></p><p>On Thursday trading yesterday, the price reached 146,500 in the Asian session, recording the highest level since November last year.</p><p><br /></p><p><br /></p><p>Then the trend change pattern began to be identified when the price made a decline and moved below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the USD/JPY chart.</p><p><br /></p><p>The decline continued today (Friday) towards around 145.00 in the European session for the price to test the RBS (resistance become support) zone.</p><p><br /></p><p>A lower drop is seen to reach back to the concentration level at last August's trading which was 143,500.</p><p><br /></p><p>On the other hand, if the price resumes the previous increase, a surge will be shown beyond 146.00 and reach the 146.00 level.</p><p><br /></p><p>Overcoming yesterday's highs will record new highs for prices this year as the US dollar continues to strengthen against the Yen.</p>