USD/JPY plunges to 133.50 as bearish sentiment for USD prevails

• USD/JPY opens the week on a bearish note, with the currency pair trading at 133.50, down by 1.10% on the day.
• Despite hitting an intraday high of 134.99, USD/JPY struggles to gain as bearish market sentiment prevails.
• US CPI and BoJ Monetary Meeting Minutes are critical events to follow on Tuesday.

Intraday price movements:

USD/JPY opens the day of a new week at 134.97, dropping to an intraday low of 132.96 before hitting an intraday high of 134.99. The pair continues to struggle to gain amid bearish market sentiment, trading at 133.50 above its 50-day SMA of 132.41, down by 1.10% on the day at the press time.

There is no critical economic event on the day that may affect the price of USD/JPY on Monday, the week's first and relatively silent day.

Markets will be closely monitoring the Consumer Price Index ex Food & Energy (MoM)(Feb) released by the US Department of Labor Statistics (Tue, Mar 14th, 2023 12:30 GMT) and Bank of Japan’s (BoJ) Monetary Meeting Minutes (Tue, Mar 14th, 2023 23:50 GMT).

Technical View:

Technical indicators for USD/JPY pair show a bearish bias in the short-term outlook. The daily chart indicates that the Daily 38.2% Fibonacci level at 135.22 remains critical support, while the Daily 61.8% Fibonacci level at 135.89 acts as critical resistance. The RSI(14), currently at 42.121, confirms the bearish sentiment for the currency pair. The daily pivot support levels for USD/JPY are 133.65, 132.44, and 130.77, while the resistance levels are 136.53, 138.20, and 139.41.