USD/JPY reversed an early fall below 129.00, thanks to several supporting factors. US bond yields and the US dollar stay strong because of the Fed’s aggressive rate hike. JPY’s safe-haven was bolstered by a softer risk tone, which could prevent the pair from rising significantly. The USD/JPY price has risen a few points from its daily lows and was last seen around 129.30 at the start of the European session. –Are you interested in learning more about forex robots? Check our detailed guide- Global economic growth remains under threat from aggressive measures taken by major central banks to curb inflation, the war between Russia and Ukraine, and the recent outbreak of COVID-19 in China. As a result, the stock market fell again following this move, benefiting the safe-haven Japanese yen and putting downward pressure on the USD/JPY. However, several factors have helped limit further losses, at least for now. According to the markets, the Fed is expected to continue its hawkish policy in the coming months to curb accelerated inflation. On Tuesday, Fed Chairman Jerome Powell made aggressive comments about raising rates until prices fell to healthy levels, confirmed by rates. Consequently, US Treasury yields rose, which boosted demand for the US dollar and helped USD/JPY reverse its early decline. Alternatively, the BOJ has promised to maintain its current ultra-loose policy and pledged non-reserved asset purchases to protect a “near-zero” 10-year yield target. Consequently, diverging monetary policies between the Fed and Bank of Japan confirm that the USD/JPY pair will strengthen shortly. Bulls do not appear to be willing to bet aggressively, suggesting spot prices have already peaked around 131.35. Get FREE Forex Signals Now! What’s next to watch? Market participants are currently looking forward to data on the US housing market – building permits and commissioning of housing – to increase later at the beginning of the North American session. In addition, the yield of US bonds affects the dynamics of prices in US dollars. Therefore, investors continue to focus on general market risk sentiment to take advantage of short-term opportunities associated with the USD/JPY pair. –Are you interested in learning more about South African forex brokers? Check our detailed guide- USD/JPY price technical analysis: Rangebound The USD/JPY price remains in a tight range on the 4-hour chart. The pair remains neutral around the 20-period SMA. Any breakout of the range will provide decent trading opportunities. The 50-period SMA is pointing lower while the 100-period SMA remains flat. The scenario suggests a neutral bias. Hence, it is prudent to watch for a valid breakout. 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 GBP/USD Forecast: Cable Dips Below 1.24 on UK’s Downbeat Inflation Saqib Iqbal 1 month USD/JPY reversed an early fall below 129.00, thanks to several supporting factors. US bond yields and the US dollar stay strong because of the Fed's aggressive rate hike. JPY's safe-haven was bolstered by a softer risk tone, which could prevent the pair from rising significantly. The USD/JPY price has risen a few points from its daily lows and was last seen around 129.30 at the start of the European session. -Are you interested in learning more about forex robots? Check our detailed guide- Global economic growth remains under threat from aggressive measures taken by major central banks to curb inflation,… 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.