USD/JPY Accumulates Support at 130.50 – Is it Time To Go Long?
It has been yet another tumultuous trading session for Asia, as USD/JPY is trying hard to trade under 131.00. The downward pressure on the pair has been caused by the return of the Japanese traders after the New Year’s break along with bearish Japan indices and US Treasury yields.
The pair is on a downward streak right after the equity markets reopened on a bearish note after a long break, resulting in urgency to safety in the Japanese Yen. The currency has banked on the upward revision to the final manufacturing PMI of the country for the last month of the year, which was changed to 48.9 from 48.8. Also, the statements coming from the Japanese PM Fumio Kishida on the price objective helped the currency recover much faster.
The decline in the USD along with the decline in Treasury bond yields has further put downward pressure on the USD/JPY pair. As far as the recovery of the USD is concerned, then it has hit a roadblock due to the upbeat market environment as traders get ready for new market activity before the US ISM manufacturing PMI and Fed minutes this week.