FxWirePro: USD/JPY slips further under selling pressure, concerns about a full-blown global banking crisis weigh

Chart - Courtesy Trading View 

USD/JPY was trading 0.27% lower on the day at 133.01 at around 11:40 GMT, remains capped below 5-DMA.

Despite the positive development surrounding the Credit Suisse saga, concerns about fresh turmoil in the global banking sector continue to drive haven flows towards the Japanese Yen.

Credit Suisse bank announced that it will exercise an option to borrow up to $54 billion from the Swiss National Bank (SNB) to shore up liquidity. 

Possibility of a broader systemic crisis in the wake of the collapse of two mid-size US banks - Silicon Valley Bank and Signature Bank keep markets spooked.

That said, prospects for further policy tightening by the Federal Reserve help limit losses. Investors still expect a 25 bps rate hike at its upcoming policy meeting on March 21-22. 

On the other side, the Bank of Japan (BoJ) is expected to stick to its dovish stance to support the fragile domestic economy. 

Support levels - 132.21 (March 15 low), 132.00 (55-week EMA), 128.07 (21-month EMA)

Resistance levels - 133.76 (5-DMA), 134.17 (55-EMA), 134.98 (110-EMA)

Summary: Technical bias for the pair is bearish. Further weakness into the daily cloud likely. Watch out for break below 55-week EMA for further downside.