USD/JPY clings to 142.00 as Fed uncertainty and Yen strength weigh

The USD/JPY pair struggles to regain ground on Tuesday, trading around the 142.00 mark during North American hours after bouncing off earlier lows near 140.65. The pair’s modest rebound comes as markets stabilize but the upside remains limited amid lingering concerns over the Federal Reserve’s autonomy. President Donald Trump’s continued attacks on Fed Chair Jerome Powell—whom he labeled a “major loser”—have shaken confidence in the Greenback’s credibility. White House officials have admitted that the administration is exploring legal ways to remove Powell, adding to market unease.

The US Dollar Index (DXY) has rebounded slightly to 98.50 but remains well below the psychological 100.00 level. Meanwhile, the Japanese Yen benefits from both safe-haven demand and growing expectations that the Bank of Japan (BoJ) will continue hiking rates, even amid global tariff-related uncertainty. The ongoing lack of clarity surrounding US-China trade policy has only reinforced the JPY’s recent gains.

From a technical standpoint, USD/JPY displays a bearish structure despite today’s mild bounce. The pair trades close to the top of its daily range (139.88–141.58), but the Relative Strength Index (RSI) sits at a neutral 32.50 while the MACD continues to flash a sell signal. The 20-day (145.88), 100-day (151.52), and 200-day (150.31) Simple Moving Averages all point downward, supported by bearish signals from the 10-day EMA (143.06) and SMA (143.05). Resistance levels are found at 143.05, 143.06, and 144.87, while immediate support is located at 141.05.

Unless US political tensions ease or macro data turns decisively pro-USD, the bias for USD/JPY remains tilted to the downside. A drop below 141.00 could open the path to retest key levels at 139.60 and 138.00.

USD/JPY daily chart