USDJPY: Bears pull back

The dollar remained volatile against the yen near 130.176 amid expectations that the Bank of Japan will tighten policy, possibly including exiting negative interest rates in the second half of the year. Rate differentials are expected to continue to move in favor of the yen. Indeed, since Japan is the largest foreign holder of US Treasuries, one should expect Japan's appetite for high-yielding overseas assets to decline if longer-term spreads continue to compress, implying a stronger yen.

US dollar yen USDJPY - 4-hour K-line chart shows:

Looking at the 4-hour chart: The market’s short-term momentum began to wait for an opportunity to enter the market. After a short-term narrow range, it slowly moved down. The market as a whole is in a weak position. The MACD indicator is in a weak position in the bullish area, and the RSI indicator is in a weak order on the side of the 50 balance line;

Long-short turning point: 130.388

Suppression: 130.976, 131.445

Support: 129.662, 129.084

Trading strategy: bearish below 130.388, target 129.662, 129.084

Alternative strategy: Bullish above 130.388, target 130.976, 131.445