The USD/JPY pair is falling toward 133.65. It’s the first time in seven days that the pair has performed worse than the day before. While doing so, the JPY breaks the seven-day-old rising trend line, signaling the bears’ arrival.
According to Reuters, the Bank of Japan (BoJ) announced for the second time on Thursday that it would buy bonds that were not on its schedule. It was reported previously that the Japanese central bank would buy emergency bonds.
According to Reuters, the Bank of Japan offered to buy unlimited sums of two- and five-year fixed-yield notes and JPY 600 billion yen in one- to 10-year bonds, on top of a daily offer to acquire 10-year paper at 0.5%. The market reaction to BoJ’s actions was minimal, with USD/JPY down 0.60% daily to 133.68. Risk-off flows dominate, driving safe-haven demand for the Japanese Yen as the year approaches.
USD/JPY Technical Outlook
The USDJPY pair strives to consolidate above the bearish channel’s breached barrier to retain the bullish trend scenario as valid and active, with the 135.60 level as the next important station. To reach the stated target, the price must gain positive momentum.
If the price falls below 133.70, it will return to the negative channel and resume the main bearish trend.
Today’s trading range is predicted to be between 133.10 support and 135.00 resistance.
Today’s projected trend: Bearish