Technical Analysis

USD/JPY creeps back up above 130.00 as the volatility trip continues


The dollar may be slightly softer today but the yen is the laggard to start the new week. USD/JPY is up 0.4% to above 130.00 again but just be mindful that despite the volatility trip ever since the BOJ policy decision last week, the pair is still predominantly caught in a downtrend for now:

On the BOJ policy decision day last week, the pair did spike higher to hit 131.57 before falling back to close under 130.00. That wasn’t enough for sellers and yen bulls to push the agenda for the downside leg to extend though and buyers are hoping for a turnaround now.

However, the key trendline resistance (white line) from the downtrend since November remains intact and that will be the first key point of resistance in gauging any material reversal in sentiment for USD/JPY. That level is seen at roughly 131.60 currently.

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