The USD/JPY extended the rebound following the release of US economic data and printed a fresh daily high at 131.65. On Asian hours, the pair bottomed at 130.39, the lowest since February 10.

US yields printed fresh highs after the latest economic reports, although they are significantly below yesterday’s levels. The yield on the US 10-year bond rose above 3.50% while the 2-year approached 4%. The Japanese Yen was modestly impacted by the rebound in yield.

Looking at USDJPY’s chart, we can see that the FX pair is in a downward direction, and it is traded at the rate of around 130.93. Having its support level at around 130.60 tested, today we could expect an upward reaction towards its resistance level at around 131.50. If it fails to pass that level, then we could expect to retreat back towards the support level of around 130.50, otherwise it should rise further towards the level of 132. While the price did indeed fall into the neckline, it vaulted the support on the back of a very weak US Dollar during the Fed event.

The price is moving into the lower support and the bulls could be committed near the 130.70s for a retest of the prior support. Bulls could target a 61.8% Fibonacci retracement into the neckline of the M-formation.

An ascending support line from the mid-January, around 130.40 by the press time, restricts immediate USD/JPY downside. However, the Yen pair buyers remain off the table unless witnessing clear break of a fortnight-old resistance line, close to 131.85 at the latest.

USD/JPY is hovering around 131.50, in positive ground for the day, after bouncing from monthly lows. The pair is attempting to remain above the critical support of 130.50. The bias is still to the downside.

Good price to buy USDJPY

Mar 23 2023