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USD/JPY Slips to 133.750 Amid Bearish Engulfing – Sell Now?

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

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

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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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