USD/JPY falls to 132.30, amid prevailing USD bearish sentiment

• The USD/JPY pair starts the week in a downtrend, with the pair trading around 132.30.
• Despite hitting an intraday high of 134.99, USD/JPY fails to advance as bearish sentiment prevails in the markets.
• US CPI and BOJ Monetary Meeting Minutes are critical events to watch on Tuesday.

Intraday price movements:

USD/JPY it opened session at 134.97, falling to an intraday low of 132.96 before hitting an intraday high of 134.99. The pair continues to struggle to gain ground amid bearish market sentiment, trading at lows around 132.30 at the close of this edition.

There are no major economic events on the day that could affect the USD/JPY on Monday, the first day of the week and relatively quiet.

Markets will closely monitor the February Consumer Price Index excluding food energy released by the US Bureau of Labor Statistics and the Bank of Japan (BoJ) Monetary Meeting Minutes.

In addition, the bankruptcy of the Silicon Valley Bank (SVB) and its potential impact on the broader US banking system remains the main focus of market attention. the economists from Commerzbank predict that the American dollar You will face negative consequences due to this event. The Fed’s strategy of implementing extremely rapid interest rate hikes appears to have been unsuccessful.

Technical vision:

The technical indicators for the USD/JPY pair show a bearish trend in the short term. The daily chart indicates that the daily Fibonacci level of 38.2% in 135.22 remains critical support, while the 61.8% daily Fibonacci level in 135.89 acts as critical resistance. The RSI (14), currently at 42.121, confirms the bearish sentiment for the currency pair. The daily support levels for the USD/JPY are 133.65, 132.44, and 130.77, while the resistance levels are 136.53, 138.20, and 139.41.