USD/JPY: Dollar Gives Way to a Stronger Yen

The yen flaunted capabilities to attract money managers as the USD/JPY slipped to a five-week low.

• The USD/JPY pair is trading to the downside on Friday, looking to cap a losing week, notching three straight days in the red. That’s because three days ago, Fed chief Jay Powell signaled the central bank is looking to halt the fast-paced interest rate campaign.
• Traders’ interest quickly shifted from the dollar to alternative currencies, and the yen in particular. The USD/JPY gravitated toward the ¥130.00 threshold earlier today, down about 135 pips, or just over 1%, so far this week. The USD/CHF is also lower for the week, while the EUR/USD rose.
• The USD/JPY has been in a sharp decline since it hit the technically important 200-day moving average at ¥137.50 on March 8. If we stay on the technical theme, chartists might be wanting to keep an eye on the ¥127.30 - ¥128.00 range as a long-term support level.