The USD/JPY pair opened Friday’s Asian session on a steady note, following a 0.3% decline on Thursday, which saw the pair close at 147.81. As of the latest update, USD/JPY is trading at 147.91, as markets continue to assess US President Donald Trump’s tariff threats and their potential impact on global trade.
Technical Outlook: Key Levels to Watch
Despite forming a ‘tweezers bottom’ candlestick pattern near its year-to-date (YTD) low of 146.54 earlier this week, the pair struggled to break above the Tenkan-sen at 148.97, leading to a pullback.
Support Levels: If USD/JPY falls below 147.00, the next key support lies at the March 11 swing low of 146.54.
Resistance Levels: A decisive break above 148.00 could pave the way for a rally towards 149.79, aligning with the Senkou Span A level.
Market Sentiment and Outlook
Investors remain cautious amid rising US trade tensions, with Trump’s tariff rhetoric weighing on market sentiment. Traders will keep a close eye on upcoming US consumer sentiment and inflation expectations data, which could influence the Federal Reserve’s interest rate policy and drive further movement in the USD/JPY pair.
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