USD/JPY Price Analysis: Moves lower to near 141.20 ahead of Chicago PMI release

USD/JPY remains above the 141.00 psychological level amid a weaker US Dollar.
The immediate resistance could be at the 141.50 major level following the 142.00 level.
Technical indicators suggest a bearish sentiment to retest the 141.00 psychological support.

Akhtar Faruqui FXStreet

USD/JPY continues to experience declines, driven by the weakening US Dollar (USD) influenced by subdued US bond yields. This trend is likely attributed to the dovish outlook of the Federal Reserve (Fed) in the first quarter of 2024. As of the early European session on Friday, the USD/JPY trades lower around 141.20. The immediate resistance is noted at the 141.50 level, with the next barrier at the 142.00 level.

A breakthrough above the psychological level could provide support for the USD/JPY pair to approach the nine-day Exponential Moving Average (EMA) at 142.24, with the psychological resistance at the 143.00 level acting as a significant hurdle. If the pair successfully surpasses this level, the next barrier to overcome would be the 23.6% Fibonacci retracement level at 143.35.

The 14-day Relative Strength Index (RSI) residing below the 50 level points to a weakened sentiment for the USD/JPY pair. Adding to the bearish outlook, the Moving Average Convergence Divergence (MACD) line is positioned below both the centerline and the signal line, confirming the prevailing bearish momentum in the market for USD/JPY.

This bearish sentiment may drive the USD/JPY pair towards the psychological support region around 141.00. A decisive break below this level could potentially open the door for the pair to test the significant level at 140.50.

USD/JPY: Daily Chart

USD/JPY: more technical levels to watch

Overview
Today last price	141.24
Today Daily Change	-0.13
Today Daily Change %	-0.09
Today daily open	141.37

Trends
Daily SMA20	143.97
Daily SMA50	147.52
Daily SMA100	147.59
Daily SMA200	142.98

Levels
Previous Daily High	141.89
Previous Daily Low	140.25
Previous Weekly High	144.96
Previous Weekly Low	141.86
Previous Monthly High	151.91
Previous Monthly Low	146.67
Daily Fibonacci 38.2%	140.88
Daily Fibonacci 61.8%	141.26
Daily Pivot Point S1	140.45
Daily Pivot Point S2	139.53
Daily Pivot Point S3	138.81
Daily Pivot Point R1	142.09
Daily Pivot Point R2	142.81
Daily Pivot Point R3	143.73

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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