JPY holds firm despite USDJPY potential rebound signal

The Japanese yen is one of the few currencies today to hold strength against the US dollar. During the Asian session, the yen clearly gained against the dollar, but later the general strengthening of the U.S. currency reversed the move. Nevertheless, the yen is close to the closing levels of Monday's session.

Interestingly, after a rather pronounced rise in yields at the end of the previous year, we are now seeing a slight pullback. Nevertheless, potentially today's pinbar could signal a potential correction in the current USDJPY downtrend, particularly as it occurs near an important support determined by the local bottom of July and the local peaks of April/May of the previous year. At the same time, the USDJPY is likely to be capped by a downward trending channel, so potential gains should end near 133.

Source: xStation5