Risk, Rates, and Reversals: What’s Next for USD/JPY?

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USDJPY USDJPY USD/JPY rebounded slightly to 143.10 but remains under pressure after slipping from the 144.50 on BoJ-Fed divergence and rising geopolitical tensions. While the BoJ appears cautious about accelerating its balance sheet tapering beyond FY2026, it still signals further rate hikes amid persistent domestic inflation, offering the yen structural support.

Technically, price is reacting off the lower trendline TL2, aligned with the 142.30–142.40 significant support zone. This area has held multiple times in the past and may offer a bullish pullback toward the 143.80 or even 146.15 resistance zones. However, failure to break above these levels could expose USD/JPY to renewed downside toward the 140.89 demand base.

Short-term recovery depends on Friday’s NFP and risk sentiment around trade tensions. A break below 142.30 would invalidate the bullish rebound and open downside to support near 140.89.

  • Resistance : 143.87 , 146.14

  • Support : 142.36 , 140.89

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