Chart - Courtesy Trading View
USD/JPY was trading 0.39% lower on the day at 133.18 at around 03:50 GMT, improved risk sentiment across markets dents demand for dollar.
The dollar slipped on Friday as systemic risk fears eased after authorities and banks moved to ease stress on the financial system in major markets.
Large U.S. banks on Thursday announced a $30 billion deposit into First Republic Bank, swooping in to rescue the lender.
The First Republic Bank had become embroiled in widespread contagion following the implosion of U.S.-based Silicon Valley Bank. First Republic stock reversed a 36% drop to close the day up 10% after the announcement.
The Federal Reserve's monetary policy meeting next week now in focus. Uncertainty for the interest rate decision escalating dramatically.
Some analysts expect that the Fed could slow down on its aggressive rate-hike campaign in a bid to ease the stress on the financial sector.
Major Support Levels:
S1: 132.72 (Lower BB)
S2: 132.01 (55-week EMA)
Major Resistance Levels:
R1: 133.53 (5-DMA)
R2: 134.16 (55-EMA)
Summary: USD/JPY is extending sideways at daily cloud top support. Technical indicators are biased lower. Scope for further downside. FOMC meeting crucial for further direction.


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