Japanese Yen Slides Near 2-Week Low Amid Tariff Fears
Japanese Yen hovers near a two-week low versus the US Dollar amid ongoing tariff concerns.
FUNDAMENTAL OVERVIEW:
The Japanese Yen (JPY) remains under pressure during Tuesday’s early European session, weighed down by concerns that U.S. President Donald Trump’s tariff plans could complicate the Bank of Japan’s efforts to normalize monetary policy.
Additionally, a stabilizing global risk environment continues to weaken the Yen’s appeal as a safe-haven asset, helping the USD/JPY pair stay firm above the 146.00 mark.
However, lingering worries over the broader economic fallout from the tariffs and ongoing geopolitical tensions in the Middle East may limit further losses in the Yen. At the same time, U.S. fiscal concerns are keeping the Dollar in check below its recent one-week high, which could cap the upside in USD/JPY and suggests caution before betting on further gains.
USD/JPY TECHNICAL ANALYSIS CHART:
Technical Overview:
USD/JPY is trading within an up channel.
USD/JPY is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 147.70
Immediate support level: 145.30
HOW TO TRADE USD/JPY
After a steady decline, USD/JPY found support at the lows and reversed to the upside, breaking through the initial key resistance. However, the pair couldn’t sustain the breakout and pulled back into consolidation. Now, USD/JPY has once again moved higher, breaking above the key resistance level and is currently trading above it. If the pair retests this level and holds it as support, it could signal further upside potential.
