USD/JPY Analysis: Bears Eye 131.00 as Bulls Await 4-Hour Support

Looking ahead, the level of 131.00 is being closely watched by USD/JPY bears, as it may come under pressure in the coming days. Bulls, on the other hand, will need to hold on to 4-hour support. Currently, USD/JPY is trading at 133.40, up from Thursday's Tokyo stock market close of 132.74. Following Credit Suisse's announcement of borrowing up to $54 billion from the Swiss National Bank to boost liquidity and investor confidence, currency markets were relatively calm on Thursday. The Yen has been trading sideways against the US Dollar, with USD/JPY near trendline resistance, as shown in the daily chart.

The daily chart reveals that the market is on the bearish side of the trendline, while also being weighed down by both horizontal and dynamic trendline resistance. The price has fallen below the prior dominant bull trend and support structure, making a downside case possible. However, if the bulls break the resistance, there is a chance of a move higher to test the 135.20s in a 50% mean reversion.