The USD/JPY pair fell by around 20 pips to 143.49, driven by a mix of technical and fundamental pressures. On the technical side, the pair tested key support near 143.50, with a break below potentially leading to further declines toward 143.00. Meanwhile, resistance remains strong near 144.20-144.50, where the 200-day moving average has capped recent rallies.
Fundamentally, the yen gained support from Japan’s revised Q1 GDP data, which showed no contraction, reinforcing expectations of further Bank of Japan (BoJ) policy tightening. However, the dollar’s downside was limited by strong U.S. jobs data, which delayed Fed rate cut bets. This policy divergence continues to shape USD/JPY volatility.
Looking ahead, the pair’s direction hinges on whether 143.40-143.50 holds as support. A sustained drop could target 142.80, while a rebound above 144.50 may signal renewed bullish momentum. Traders should watch U.S. inflation data and BoJ commentary for fresh catalysts.
Related topics：
