USD/JPY MAINTAINS BEARISH BIAS IN ASIAN SESSION – 23 MARCH 2023
23 Mar 2023
After US statistics, the USD/JPY goes positive for the day and maintains a steady at over 131.00
FUNDAMENTAL OVERVIEW
USD Prior to the opening bell on Wall Street, the dollar gathers momentum.
US unemployment claims decreased more than anticipated.
Since its monthly low earlier on Thursday, USD/JPY has gained more than 100 pip.
Following the release of US economic data, the USD/JPY continued its upward trend and reached a new daily high of 131.65. The pair’s bottomed out during Asian hours at 130.39, its lowest level since February 10.
Initial Jobless Claims decreased by 1,000 to 191,000 during the week of March 18 compared to forecasts for a rise to 201,000. In the week ending March 11, continuing claims decreased by 14,000 to 1,694,000. The data indicate that there is still a tight labour market.
The Chicago Fed National Activity Index (CFNAI) was expected to be 0. The index dropped from 0.23 in January to -0.19 in February.
USD/JPY rebounds
After the most recent economic statistics, US yields reached new highs, though they are still substantially below yesterday’s levels. The US 10-year bond’s yield increased to over 3.50%, while the 2-year yield was close to 4%. The slight increase in yield has an impact on the Japanese Yen.
After recovering from monthly lows, USD/JPY is now trading around 131.50, up for the day. The pair is trying to hold above the pivotal support level of 130.50. Still, there remains a downward bias.
USDJPY TECHNICAL ANALYSIS DAILY CHART:
Technical Overview
USDJPY is currently trading in down channel.
USDJPY is currently trading below all SMA.
RSI is in selling zone which suggests bearishness and Stochastic is suggesting no trend.
USDJPY resistance is at 131.149 & its immediate support level is 130.442
HOW TO TRADE USDJPY
USDJPY is currently encountering resistance at a particular level and is trading in a downward channel. We can see upside if it breaks the resistance zone and holds above that.