USD/JPY Price Analysis: Modest recovery fails to alter broader bearish outlook

USD/JPY trades near the 143 zone, extending mild gains ahead of the Asian session
Despite the uptick, technical indicators and moving averages continue to reflect a bearish structure
Support sits at 142.41, while resistance levels cap gains near 145.79 and 146.62

Patricio Martín FXStreet

The USD/JPY pair saw a slight rise on Tuesday, hovering around the 143 area as it edged higher within its daily range. The modest intraday rebound comes ahead of the Asian session but has yet to challenge the broader bearish signals dominating the chart.

Technical indicators remain conflicted. The Relative Strength Index is neutral at 32.19, holding near the lower bound without triggering oversold conditions. Meanwhile, the MACD continues to print a bearish crossover, reinforcing downside pressure. A contrasting view comes from the Williams Percent Range at -88.24, which suggests the pair may be oversold in the short term and due for a bounce. The Ultimate Oscillator at 52.72 remains neutral, offering no clear bias.

The dominant trend remains negative, especially when analyzing moving averages. The 10-day exponential and simple moving averages at 145.47 and 145.79, respectively, cap near-term upside. Longer-term averages—20-day at 147.81, 100-day at 152.02, and 200-day at 150.77—continue to slope downward, affirming persistent selling pressure.

Daily chart

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.