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USD/JPY Price Analysis: Looks set for further downside below 131.50

USD/JPY is in all likelihood to drag in addition amid the strengthening enchantment for the Japanese Yen.
It looks that ahead nervousness beforehand of the Fed’s economic coverage is lacking from the market.
Declining 10-EMA at 132.35 shows that the draw back momentum is extraordinarily strong.
The USD/JPY pair has corrected sharply under 132.00 in the Asian session. The enchantment for the Japanese Yen as a safe-haven has expanded amid workable fears of world banking turmoil led via rising hobby charges with the aid of western central banks.

S&P500 futures have grew to become terrible after surrendering sizeable positive factors generated in the early morning session, portraying extraordinarily bad market sentiment, no matter UBS rescuing Credit Suisse. Bloomberg stated Finma Chief Urban Angehrn says US regulators guide the UBS deal to purchase Credit Suisse for $3.3 billion.

The US Dollar Index (DXY) is struggling to maintain above the 103.80 resistance. It appears that ahead anxiousness beforehand of the Federal Reserve’s (Fed) financial coverage is lacking from the market.

USD/JPY is declining towards the 61.8% Fibonacci retracement (placed from January sixteen low at 127.22 to March eight excessive at 137.91) at 131.30 on a four-hour scale.

The declining 10-period Exponential Moving Average (EMA) at 132.35 shows that the draw back momentum is extraordinarily strong.

Adding to that, the Relative Strength Index (RSI) (14) has slipped into the bearish vary of 20.00-40.00, which guarantees weak spot further.

It appears that the draw back strain would proceed if the asset will lay down ultimate week’s low at 131.55. An incidence of the identical would drag the asset towards January 23 excessive round 130.89 observed with the aid of February 10 low at 129.80.

In an alternate scenario, a wreck above the 38.2% Fibo retracement at 133.83 would reinforce the US Dollar bulls. This may force the asset towards March 15 excessive at 135.11 and February 28 low at 135.73.

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