USD/JPY falls more than 4.5% and tests the 131.00 zone

  • The yen continues to rise after the Bank of Japan surprise.
  • USD/JPY falls more than 4% on Tuesday.
  • Mixed dollar on the forex board due to risk appetite.

USD/JPY fell further during the American session and bottomed at 131.00, the lowest intraday level since August 2. It remains close to this low, falling more than 550 points or 4.15%.

The pair is heading for the lowest daily close since June, with the yen posting one of the biggest daily gains buoyed by the Bank of Japan’s decision to raise the upper margins of its control of the 10-year yen yield curve. 0.25% to 0.50%.

Does the BoJ break the correlation of the markets?

It was a small change from the BoJ, but market participants see much more. The impact of the announcement shows that a more significant policy change could come much sooner than expected.

Up until a few hours ago, rising US yields meant a weakening Japanese yen and bearish pressure on gold. The Japanese yen is having the best day in years across the board and gold prices are in weekly highs.

Wall Street’s main indices are now trading positive, unaffected by rising US yields. In the old days, before the big divergence between Federal Reserve and Bank of Japan monetary policy, higher returns were normal at times of optimism in the stock market, reflecting the outflow of money from safer assets. in search of higher returns.

USD/JPY Technical Levels

USD/JPY

Panorama
Last Price Today 131.07
Today’s Daily Change -5.94
Today’s Daily Change % -4.34
Today’s Daily Open 137.01
Trends
20 Daily SMA 137.36
SMA of 50 Daily 142.36
SMA of 100 Daily 141.2
SMA of 200 Daily 135.66
levels
Previous Daily High 137.16
Minimum Previous Daily 135.75
Previous Weekly High 138.18
Previous Weekly Minimum 134.52
Maximum Prior Monthly 148.82
Minimum Prior Monthly 137.5
Daily Fibonacci 38.2% 136.62
Daily Fibonacci 61.8% 136.29
Daily Pivot Point S1 136.12
Daily Pivot Point S2 135.23
Daily Pivot Point S3 134.71
Daily Pivot Point R1 137.53
Daily Pivot Point R2 138.05
Daily Pivot Point R3 138.94

Source: Fx Street

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