USDJPY Analysis: Examining swing areas and potential downside momentum amid yield shifts | Forexlive

The USDJPY found support buyers in the Asian session as it reached a low swing area (see green numbered circles) between 130.345 and 130.60, resulting in a reversal to the upside at the start of the North American session (refer to the earlier video HERE). The price then entered a higher swing area ranging from 131.550 to 131.84 (indicated by red numbered circles), encountering resistance from the falling 100-hour moving average within that zone. Sellers, leaning against this area, have since pushed the USDJPY back towards the lows.

A breach below 130.345 could trigger further downside momentum, influenced by declining yields. The two-year yield has dropped by 9.3 basis points to 3.889%, while the 10-year yield has decreased by around five basis points to 3.450%. Observing the broader perspective on the four-hour chart, this week’s swing area can be traced back to January and February. If the price falls below this level, traders would next target the February 10th low at 129.79.