Japanese bond yields surpassed the central bank’s target. The yen has increased by 6% in slightly more than three weeks. The US consumer price index dropped to 6.5% in December. Today’s USD/JPY outlook is bearish. On Friday, the yen gained as investors applauded a decline in US inflation, reaching a seven-month high. Japanese bond yields surpassed the central bank’s target as markets questioned Tokyo’s dedication to losing monetary policy. –Are you interested in learning more about forex robots? Check our detailed guide- The yen, which jumped 2.7% against the dollar overnight, continued to climb, rising another 0.2% to $128.65. Since the Bank of Japan shocked markets by enlarging the range around its target yield on 10-year bonds, it has increased by 6% in slightly more than three weeks. Bets on a future departure from the ultra-easy policy intended to keep rates close to zero have increased in response to a newspaper report indicating the potential for greater flexibility. On Friday morning, the 10-year Japanese government bonds yield exceeded its new ceiling of 0.5% at 0.53%. In response, the BOJ started conducting unplanned bond purchases. Naka Matsuzawa, the chief Japan macro strategist at Nomura, made this statement about the central bank’s upcoming meeting, which will take place from January 17–18. “The market is expecting that they will increase the band for the 10-year again at the next meeting,” Beyond Japan, overnight US December inflation data that more or less met consensus expectations dominated the market’s mood. From 7.1% in November, the annual growth rate in the main consumer price index dropped to 6.5% in December. Investors’ expectations for US interest rates were revised downward in response. Nearly everyone anticipates a 25 basis point increase from the Federal Reserve rather than a 50 basis point increase next month. The futures markets have also priced in several rate decreases this year. USD/JPY key events today No key economic releases from the US or Japan are scheduled for today, so investors will keep reflecting on the US inflation report. Get FREE Forex Signals Now! USD/JPY technical outlook: Bulls might return to the oversold region The 4-hour chart shows USD/JPY in the oversold region after making a strong impulsive move that broke below several support levels. The price is trading far below the 30-SMA, showing the move down was steep. –Are you interested in learning more about South African forex brokers? Check our detailed guide- However, the move might pause at the 128.51 level as bulls return for a retracement. This might see a pullback before the downtrend goes on and breaks below the 128.51 level. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next AUD/USD Price Analysis: Aussie Rallies on Easing US Inflation Saqib Iqbal 2 weeks Japanese bond yields surpassed the central bank's target. The yen has increased by 6% in slightly more than three weeks. The US consumer price index dropped to 6.5% in December. Today’s USD/JPY outlook is bearish. On Friday, the yen gained as investors applauded a decline in US inflation, reaching a seven-month high. Japanese bond yields surpassed the central bank's target as markets questioned Tokyo's dedication to losing monetary policy. -Are you interested in learning more about forex robots? Check our detailed guide- The yen, which jumped 2.7% against the dollar overnight, continued to climb, rising another 0.2% to $128.65. Since… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.