USDJPY falls below the psychological mark of 141.00 due to a weak US Dollar.
USDJPY falls further as the US Dollar (USD) falls on the back of the Federal Reserve’s (Fed) dovish view for the first quarter of 2024. During the early European session on Thursday, the USDJPY pair is trading down around 140.80. Following the next psychological barrier at the 142.00 level, the 141.00 level emerges as the immediate resistance.
USDJPY Technical Outlook
A sustained break over the 142.00 level might propel the pair to the nine-day EMA at 142.41.
Technical indications point to a bearish bias testing the major support at 140.50.
If a breakthrough occurs above the psychological level, it may provide assistance. Following psychological resistance at the 143.00 level, the USDJPY pair is expected to reach the nine-day Exponential Moving Average (EMA) at 142.41. If the pair successfully breaks over this level, the pair will face the 23.6% Fibonacci retracement level at 143.35.
The 14-day Relative Strength Index (RSI) is below 50, indicating that the USDJPY pair is losing ground. Furthermore, the Moving Average Convergence Divergence (MACD) line is below the centerline and the signal line, indicating a bearish market for the pair.
The bearish attitude might push the pair towards the crucial support level of 140.50. If there is a decisive break below this level, the pair may be able to test the psychological barrier at 140.00.
