The USD/JPY currency pair has reversed its early gains and is trading near 144.20 during Wednesday’s European session. This pullback comes as the US Dollar (USD) struggles to maintain the momentum of Tuesday's recovery.
The US Dollar Index (DXY), which gauges the dollar's strength against a basket of six major currencies, has retreated from its intraday high of 99.85 and is stabilizing around 99.50, signaling a lack of bullish follow-through.
Key Drivers:
Weaker USD sentiment is weighing on the pair, likely influenced by a shift in US Treasury yields or expectations regarding future Fed rate moves.
A stronger Japanese Yen could also be at play, potentially supported by safe-haven demand or policy signals from the Bank of Japan.
Technical Perspective:
If USD/JPY continues to decline, the next support level might be found near 144.00, followed by 143.50.
On the upside, resistance is seen near 145.00, a psychological and technical barrier.
The Blueberry Team
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.