The USD/JPY exchange rate lingered near 144.50 during the European session, remaining under pressure. Although the U.S. Dollar Index (DXY) found temporary support near 100.10, its overall trend remains uncertain following Moody’s downgrade of the U.S. sovereign credit rating. Market sentiment is currently tilted toward cautious bearishness, with traders concerned about U.S. debt issues and uncertainties in trade policies—sentiments reflected in the dollar’s weakness. Meanwhile, the progress of U.S.-Japan trade negotiations has added to market uncertainty.
Technical Outlook:
Short-Term: If the pair stabilizes above the 143.74 support level and rebounds above 145, it may challenge the 146.19 resistance level in the near term. A decisive breakout above 146.19 could trigger a new upward trend, targeting 147.95 and 148.64.
Long-Term: A genuine confirmation of a bullish regime would require breaking above the 150 psychological level, which hinges on fundamental catalysts such as the Federal Reserve delaying rate cuts or the Bank of Japan shifting to a more accommodative stance.
Key Drivers to Monitor:
U.S. Treasury yield dynamics and Fed policy expectations.
Developments in U.S.-Japan trade talks and risk sentiment shifts.
Volatility in global equity markets and safe-haven flows.
Market participants are advised to exercise caution amid heightened uncertainty, with tight stop-losses recommended for directional trades.
In the market, there are no absolutes, and neither upward nor downward trends are set in stone. Therefore, the ability to judge the balance between market gains and losses is your key to success. Let money become our loyal servant.
Technical Outlook:
Short-Term: If the pair stabilizes above the 143.74 support level and rebounds above 145, it may challenge the 146.19 resistance level in the near term. A decisive breakout above 146.19 could trigger a new upward trend, targeting 147.95 and 148.64.
Long-Term: A genuine confirmation of a bullish regime would require breaking above the 150 psychological level, which hinges on fundamental catalysts such as the Federal Reserve delaying rate cuts or the Bank of Japan shifting to a more accommodative stance.
Key Drivers to Monitor:
U.S. Treasury yield dynamics and Fed policy expectations.
Developments in U.S.-Japan trade talks and risk sentiment shifts.
Volatility in global equity markets and safe-haven flows.
Market participants are advised to exercise caution amid heightened uncertainty, with tight stop-losses recommended for directional trades.
In the market, there are no absolutes, and neither upward nor downward trends are set in stone. Therefore, the ability to judge the balance between market gains and losses is your key to success. Let money become our loyal servant.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.