The USD/JPY continues to drop as tariff fears grow, leading more investors to seek safe haven assets like the yen (JPY), Swiss franc (CHF), and gold. Currently, the currency pair sits around 142.85, with more chances for further declines. Key technical indicators show support levels for USD/JPY at 142, 141.60, and 139.90. Resistance is noted at 144.40/60 and 145.70, influenced by the 21-day and 50-day moving averages, respectively.

Market Statements and Warnings

General market cautions highlight risks and uncertainties tied to future forecasts. The information here is for informational purposes only and should not be seen as a trading or investment recommendation. Investors are encouraged to conduct their own research before making financial decisions. We do not guarantee the accuracy or completeness of the information, and readers are responsible for their investment outcomes. Warnings include trading risks, which could lead to total investment loss. If you’re unsure about foreign exchange trading, it’s wise to seek independent financial advice. Views expressed may differ from official policies and are not verified for accuracy. As USD/JPY falls due to growing tariff concerns, the dollar faces ongoing pressure while investors seek safety. The market is increasingly risk-averse—caution is evident across many asset classes. The yen and traditional safe havens, like the Swiss franc and gold, are seeing increased demand. Historically, when global trade tensions rise, investors tend to focus on preserving capital by switching to less volatile assets.

Technical Analysis and Market Sentiment

The technical picture reveals more about this market movement. The pair is currently near 142.85, close to the support level at 142. If this level breaks decisively—and recent moves show weaker dollar strength—we could see prices fall to 141.60 and possibly test 139.90. These levels have historically acted as turning points during buying spurts in the yen and will be closely monitored in upcoming sessions. Resistance levels also matter. The 21-day moving average is acting as resistance around 144.40–144.60, followed by the 50-day moving average around 145.70. These averages are significant for medium-term strategies, and reactions near these levels could trigger buying or selling. Currently, there’s less upward momentum for USD/JPY, suggesting bears may take charge unless some external factors change this trend. Timing is critical now. Strategies based on momentum should be reassessed because of ongoing geopolitical concerns. As volatility rises—especially in currency pairs involving the yen—risk management needs special attention. Traders involved in short-term positions should monitor levels more closely than usual. This sentiment is part of a broader picture. Global markets are showing early signs of stress, with sharp intra-day swings happening between FX pairs and commodities. Gold often moves in reverse to yield expectations and overall risk appetite. The yen’s recent strength reflects not just technical factors, but growing market sentiment. It’s a good time to rethink assumptions about stability in USD-denominated currencies. Liquidity can be thin during off-peak hours, which may lead to sharper movements. Range trading strategies could struggle if those support levels fail, particularly if the USD continues to weaken against other major currencies. Having clear execution plans—like stop placements that account for volatility—can help manage surprises. If prices drift down gradually instead of crashing, we might misinterpret brief pullbacks as reversals. Patience and discipline in these situations often lead to success, especially when market sentiment is strong in one direction for a long time. Scheduled data releases in the next two weeks could lead to sudden changes. Any open positions before those events should carry an appropriate level of risk. We prefer not to heavily rely on short-term expectations but instead to adjust our strategies based on confirmed price behavior. This approach emphasizes awareness—not certainty. Identifying support and resistance isn’t enough; we must observe how prices interact with those levels rather than sticking to rigid forecasts. Confirmation is crucial in market environments influenced by broader economic concerns. We maintain our focus, applying strategies that have worked before, and avoid overcommitting until we have clearer insights. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now