USD/JPY Drifts Lower as Bearish Pressure Mounts; Key Support Near 141.62 in Sight
Technical Analysis:
USD/JPY traded cautiously lower Friday, slipping toward the bottom end of a narrow 142.13–142.52 range amid broad-based dollar weakness and reduced market liquidity. Persistent selling pressure is evident, highlighted by the ongoing formation of a series of lower daily highs, which indicates bearish control remains firmly entrenched. The lack of meaningful upside momentum, reinforced by recent price action stalling below multiple resistance clouds, underscores the prevailing downside risks in the short-term technical outlook.
Immediate technical support for USD/JPY is now clearly defined at the weekly low of 141.62. A decisive breach below this level could sharply intensify bearish momentum, potentially triggering a more pronounced correction toward deeper technical objectives. Subsequent support levels include the lower Bollinger band situated around 140.65, which may attract buyers initially. However, should bearish pressure persist due to fundamental factors—including ongoing U.S.–Japan trade negotiations and market apprehension surrounding Fed policy dynamics—the pair could ultimately test psychologically important support at 140.00.
On the upside, short-term resistance begins at Thursday’s high near 143.11, with more significant resistance just above at the descending 9-day exponential moving average (EMA), currently near 143.76. Further resistance lies at 144.00, corresponding to the April 10 low, marking a critical pivot point. USD/JPY bulls must reclaim and hold above this level to neutralize bearish pressure and signal a potential shift in short-term momentum. With significant event risks ahead—including Japan-U.S. trade talks, the IMF/World Bank meetings, and Japanese PMI data—traders will remain vigilant for fresh directional signals.