After going above the 129 level, USD/JPY took a sharp decline. Profit-taking, sales by Japan’s exporters, and the activity of the BOJ all impact the pair. Fed and BOJ policies will be the key factor heading forward. The USD/JPY price during the London session faces a sharp decline after going above the 129.00 level. The USD retreated after a strong rally. Down we go Before losing traction, the USD/JPY price reached its highest level in over two decades at 129.00. However, the sudden drop occurred after substantial Japanese exporter bids at 129.50 were received. –Are you interested in learning more about forex bonuses? Check our detailed guide- Furthermore, investors resorted to profit-taking as the yen recently plummeted against the US dollar. The major’s corrective decline was also spurred by assumed option obstacles near 129.50. BoJ also weighs in The BOJ’s bond market intervention is also responsible for the UD/JPY’s downhill trajectory. Today, the Bank of Japan said it will conduct unrestricted fixed-rate purchases of 10-year Japanese Government Bonds (JGBs) at 0.25 percent from April 21 to 26. Earlier in the Asian session, the central bank launched an unrestricted fixed-rate buy operation for JGBs for the first time this month, after the 10-year JGB reached the 0.25 percent maximum. In an interview with Reuters, Japanese Deputy Chief Cabinet Secretary Seiji Kihara expressed a similar attitude to his colleagues, stating that the government will closely monitor the impact of a weaker yen on the economy. Buy the dip? On the other hand, the pair’s downside might be viewed as a favorable ‘buy the dip’ opportunity. The Fed-BOJ monetary policy divergence will continue to benefit US Treasury rates, hence the dollar versus the yen. USD/JPY data events ahead We have the typical weekly Mortgage Applications in the US docket, followed by Existing Home Sales and speeches by Fed M. Daly and C. Evans. As for the JPY, we already saw the Balance of Trade and Tertiary Index in the Tokyo session. Get FREE Forex Signals Now! What’s next to watch for USD/JPY price? Investors and traders will look at the US data later today for fresh impetus. USD/JPY price technical analysis: On a free fall The USD/JPY is wobbling at the 127.80 level with a decrease of 0.80%. On the 4-hour chart, 20, 50, 100, and 200 SMAs are above the price. It signifies a broader bullish trend. –Are you interested in learning more about ETF brokers? Check our detailed guide- The next key resistance is at 129.61. If the price goes above this level, we can see it further climbing towards the 130.29 level. Conversely, the next key support level for the pair is 127.61. Again, if the price goes above this level, it can dip towards 126.29. The volume for the last three down bars is quite high but in the declining mode. It shows that the recent downside is corrective in nature. 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 USD/CAD Price Crashes Below 1.2500 as USD Retreat Continues Olimpiu Tuns 7 months After going above the 129 level, USD/JPY took a sharp decline. Profit-taking, sales by Japan's exporters, and the activity of the BOJ all impact the pair. Fed and BOJ policies will be the key factor heading forward. The USD/JPY price during the London session faces a sharp decline after going above the 129.00 level. The USD retreated after a strong rally. Down we go Before losing traction, the USD/JPY price reached its highest level in over two decades at 129.00. 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