Forex Update : the yen falls to a five-year low.

FX:USDJPY   U.S. Dollar / Japanese Yen
Hello everyone, as we all know the market action discounts everything :)

_________________________________Make sure to Like and Follow if you like the idea_________________________________

The yen plummeted to a near five-year low versus the US dollar , and other currencies suffered losses, as investors bet that the Bank of Japan (BOJ) will lag behind its peers in tightening monetary policy to combat excessive inflation .

The US Dollar Index , which measures the greenback against a basket of other currencies, fell 0.04 percent to 96.240.
The USD/JPY exchange rate fell 0.18 percent to 115.93.

The AUD/USD pair fell 0.13 percent to 0.7229, while the NZD/USD pair fell 0.21 percent to 0.6798.

The USD/ CNY pair was unchanged at 6.3723, while the GBP/USD pair fell 0.02 percent to 1.3529.

On Tuesday, the yen fell to a five-year low of 116.35 per euro , as well as through its 200-day moving average to a two-month low of 131.45 per euro . Earlier in the session, it was trading at approximately 131.06 per euro , while sliding to a more than six-year low against the Swiss franc and a seven-week low against the Australian dollar.

This resulted in a dramatic increase in US Treasury yields in the initial trading days of 2022, with the yen suffering as the yield spread between the US and Japan increased.

Meanwhile, the Federal Reserve of the United States will issue the minutes of its December meeting later in the day, which will be analyzed for hints about the central bank's rate hike schedule.

Traders are looking forward to the U.S. jobs report, which contains the non-farm payrolls and is due on Friday, for more information. However, with Fed Funds futures indicating that investors expect an interest rate hike by May 2022, Analysts now anticipate two 25-basis-point raises in March and June, rather than a single boost in September.

Resistance points for the USD/JPY
1) 115.41
2) 115.76
3) 116.32

Support points for the USD/JPY
1) 114.51
2) 113.96
3) 113.61

This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!

Thank you for reading.