The market expects that there is limited room for the yen to depreciate further

Fundamental analysis:

The USD / JPY remained volatile around 126.877. Japan's economic growth is improving and inflation is stabilizing, putting upward pressure on the yield of Japanese government bonds. The market expects that the time for the Bank of Japan to end the control of the yield curve may be earlier than expected. There are many ways for the recovery of the yen - the weakness of the US economy or the rise of Japanese interest rates. In short, there is limited room for the further depreciation of the yen.

USD JPY - 4-hour K-line chart shows:

Technical comments: the short power continued to fluctuate and fall in the middle and lower rail section of the brin belt index channel, and the low level reached the node near 126.354 and began to fluctuate. The short-term short power continued to move downward. The brin belt index showed a trend of short opening and continued to move downward. The MACD index was below the 0 axis line, the short area maintained a concussion and downward movement, and the RSI index was below the 50 equilibrium line and maintained a weak consolidation;

Turning point: multiple empty

Pressing position: 127.459, 127.926

Support position: 126.464, 126.047

Trading strategy: bearish below 127.054, target 126.464, 126.047

Alternative strategy: bullish above 127.054, target 127.459, 127.926

The above analysis is a personal point of view and is for reference only.