USD/JPY falls around 140.50 as Fed pressure increases

• The USD/JPY falls to the region of 140.50 amid renewed political threats to the independence of the Fed
• Trump’s comments intensify fears of institutional instability, weighing even more about the US dollar
• Momentum’s signals are still bassists, with the next key support observed about 139.60

The USD/JPY collapsed on Monday during the American negotiation, falling sharply towards the 140.50 mark as the market in general reacted to the growing concerns about the independence of the Federal Reserve. The dollar extended its downward trend after the US president, Donald Trump, reiterated his dissatisfaction with the president of the Fed, Jerome Powell, accusing him of politically motivated rates settings at the end of 2024. The situation has unleashed intense speculation about Powell’s future and has generated doubts about the autonomy of the Fed.

Meanwhile, the American dollar index (DXY) is quoted in red numbers, testing the 98.50 area for the first time in three years. In this context, the demand for Japanese has strengthened. Investors seek safer assets as global uncertainty grows and confidence in US monetary leadership is deteriorated despite Trump’s 90 -day pause in new reciprocal tariffs, the absence of a clear path in commercial policy continues to disturb the markets.

On the Technical Front, the USD/JPY is showing a bearish signal. The price action collapsed below the minimum of the previous week in 141.64 and now aims at the minimum of June 2023 about 139.60. The 140.00 level remains a key psychological support zone. A clear rupture below this threshold could expose a downward risk towards the middle of the 130 in the medium term. The indicators support this perspective, with the MACD showing bearish divergence and the RSI falling into over -sales territory. Key resistance levels are observed about 142.20, followed by 143.40 and 144.60.

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