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How’s the dollar faring against the yen?

Let’s take a look at USD/JPY’s chart ahead of a light trading session.

Before moving on, ICYMI, yesterday’s watchlist checked out AUD/CHF’s range support amidst risk-off flows in the markets. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

U.S. producer price increases slow down from 1.6% to 0.5% in March

U.S. initial jobless claims up by 203K – the highest level since February – vs. 190K expected

USD/CHF hit parity for the first time since December 2019

Jerome Powell confirmed for a second term as Fed Chair

Yellen: Fed can bring down inflation without causing a recession

Yellen cites Terra meltdown in call for new crypto regulations

OPEC cuts 2022 world oil demand forecast again on Ukraine war

Powell says he can’t guarantee a “soft landing” as the Fed looks to fight inflation

BusinessNZ: Manufacturing PMI slips from 53.8 to 51.2 in March

China to “strictly limit” unnecessary overseas travels by Chinese citizens to combat COVID

Asian shares trim losses ahead of the weekend

Upcoming Potential Catalysts on the Forex Economic Calendar:

Eurozone industrial production at 9:00 am GMT
Preliminary UoM consumer sentiment at 2:00 pm GMT
FOMC member Loretta Mester to talk monetary policy at an online ECB event at 4:00 pm GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: USD/JPY

USD/JPY 1-hour Forex Chart

USD/JPY 1-hour Forex Chart

USD/JPY is consistently trading below the 200 SMA, yo. That hasn’t happened on the 1-hour chart since early March 2022!

If you’re like me and you think, “Hmm. Possible reversal?” then you’ll want to keep your eyes on the 128.75 level that lines up with a previous support and 38.2% Fibonacci retracement of this week’s downswing.

I’m not seeing a lot of top-tier reports scheduled today, so it’s likely that dollar demand and risk sentiment will dictate USD/JPY’s price action for another day.

Watch how USD/JPY reacts to the 128.75 zone. A rejection at the level will support a short-term reversal.

The pair could dip back to its lows near 127.50 or even make new monthly lows. Hey, it’s not Friday the 13th for nothing!

If risk appetite or profit-taking from this week’s bearish trades becomes the name of the game during the U.S. session, then you should also be ready for a possible trip to the 1-hour chart’s 100 and 200 SMAs.