The yen saw high volatility yesterday, influenced by strong US economic data and the ECB interest rate decision. However, the pair ended the day near its opening price.
The USD/JPY traded at one point in the day as high as 82.05 before ending the day down slightly at 81.55. The pair began yesterday trading at 81.63. Better than expected employment and non-manufacturing data had the yen on its back foot as the dollar began to strengthen. However, towards the end of the day the gains in the pair failed to hold. A similar situation arose following the downgrade in the sovereign credit rating of Japan last week.
The inability of the USD/JPY to make new highs does not bode well for the pair and the bias is to the downside. Support for the pair is found at 81.30, followed by the December low of 80.90. Resistance is located at yesterday's high of 82.05 and the January 27th high at 83.20.