- USD/JPY recovers from previous minimums but remains below 142.00.
- Trump’s criticism to Powell and the independence of the Fed affect the attractiveness of the dollar.
- Technical perspectives remain bassists with key resistance in 143.05.
The USD/JPY torque struggles to recover land on Tuesday, quoting around the 142.00 mark during the North American hours after bouncing from previous minimums about 140.65. The modest rebound of torque is produced as the markets stabilize, but the bullish potential is still limited amid persistent concerns about the autonomy of the Federal Reserve. The continuous attacks of President Donald Trump to the president of the FED, Jerome Powell – who labeled it as a “great loser” – they have shaken the confidence in the credibility of the dollar. White House officials have admitted that the administration is exploring legal ways of dismissing Powell, adding restlessness to the market.
The US dollar index (DXY) has bounced slightly at 98.50 but remains well below the psychological level of 100.00. Meanwhile, the Japanese Yen benefits from both the demand for safe refuge and the growing expectations that the Bank of Japan (Boj) will continue to raise rates, even in the midst of global uncertainty related to tariffs. The continuous lack of clarity around commercial policy between the US and China has only reinforced the recent profits of the JPY.
From a technical point of view, the USD/JPY shows a bearish structure despite the slight rebound today. The pair quotes near the top of its daily range (139.88–141.58), but the relative force index (RSI) is located in a 32.50 neutral while the MACD continues to show a sales signal. Simple mobile stockings (SMA) of 20 days (145.88), 100 days (151.52) and 200 days (150.31) all point down, backed by bass signals of the EMA (10 -day mobile media) of 10 days (143.06) and SMA (143.05). Resistance levels are found in 143.05, 143.06 and 144.87, while immediate support is located in 141.05.
Unless political tensions in the US are calm or macroeconomic data are decidedly in favor of the dollar, the trend for the USD/JPY remains inclined downward. A fall below 141.00 could open the way to re -test key levels in 139.60 and 138.00.
USD/JPY DAILY GRAPH
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
