USDJPY falls to about 141.20 ahead of the Chicago PMI announcement.
USDJPY continues to fall, owing to a weaker US Dollar (USD) affected by low US bond yields. This tendency is most likely due to the Federal Reserve’s (Fed) dovish view for the first quarter of 2024. The USDJPY is trading lower in the early European session on Friday, around 141.20. The nearest resistance is located at 141.50, with the next barrier located at 142.00.
USDJPY Technical Outlook
USDJPY stays above the psychological milestone of 141.00.
Following the 142.00 level, the immediate resistance could be at the 141.50 major level.
Technical indications point to a bearish retest of the psychological support level of 141.00.
A breakthrough above and beyond the psychological The psychological resistance at the 143.00 level could provide support for the USD/JPY pair as it approaches the nine-day Exponential Moving Average (EMA) at 142.24. If the pair successfully breaks over this level, the pair will face the 23.6% Fibonacci retracement level at 143.35.
A 14-day Relative Strength Index (RSI) below 50 indicates a bearish mood for the USD/JPY pair. To add to the gloomy view, the Moving Average Convergence Divergence (MACD) line is below both the centerline and the signal line, confirming the market’s current bearish trend for USDJPY.
This bearish attitude might push the USDJPY pair down to the psychological support level of 141.00. A significant breach below this level might perhaps allow the pair to test the key level of 140.50.
