USD/JPY keeps the bearish note unchanged around 131.00

• USD/JPY drops to the 130.40 region earlier in the session.
• The selling interest in the dollar weighs on the pair so far.
• US Consumer Confidence surprised to the upside in March.

The continuation of the weak fashion around the greenback put USD/JPY under renewed downside pressure and forced it to revisit the 130.40 region earlier on Thursday.

USD/JPY looks at banking jitters, US yields

The noticeable downtick in USD/JPY eroded part of Monday’s auspicious start of the new trading week on the back of further retracement in the greenback and some safe haven demand in response to still unabated concerns around the banking system.

The daily advance in spot comes in contrast to another positive session in US yields across the curve, which manage to add to gains recorded at the beginning of the week, while the JGB 10-year yield remain within a consolidative phase below the 0.40% level.

No data releases in Japan on Tuesday left the attention to the US data releases, where the preliminary Goods Trade deficit is seen at $91.63B in January, the House Price Index gauged by the FHFA rose 0.2% MoM in January and the Consumer Confidence measured by the Conference Board surpassed expectations at 104.2 for the current month.

USD/JPY levels to consider

As of writing the pair is retreating 0.38% at 131.01 and the break below 129.63 (monthly low March 24) would open the door to 128.08 (monthly low February 2) and finally 127.21 (2023 low January 16). On the other hand, the immediate hurdle comes at 132.38 (55-day SMA) seconded by 133.00 (weekly high March 22) and then 135.11 (weekly high March 15).