Why Is USD/JPY Dropping Toward 148.00 Today?
USD/JPY drops toward 148.00 as the Japanese Yen extends its strength
FUNDAMENTAL OVERVIEW:
USD/JPY extended its decline for a third consecutive session on Tuesday, sliding 0.35% to hover near 148.00. Selling pressure on the pair stems from a weaker US Dollar, as mounting fears of a potential government shutdown have boosted safe-haven demand for the Japanese Yen.
At the time of writing, the US Dollar Index (DXY), which measures the Greenback against six major peers, was down 0.15% near 97.80.
Shutdown risks intensified after Vice President JD Vance remarked following talks with Democrats on Monday that “we’re headed to a shutdown because the Democrats won’t do the right thing,” as reported by CNBC.
Additionally, the US Labor and Commerce Departments cautioned that key economic data, including September’s employment report, may be delayed if Congress fails to pass a stopgap bill before Tuesday midnight.
USD/JPY TECHNICAL ANALYSIS CHART:
Technical Overview:
USD/JPY is trading within an up channel.
USD/JPY is moving below 20&50 Moving Averages (SMA).
The Relative Strength Index (RSI) is in Bullish Zone, while the Stochastic oscillator suggests Neutral trend.
Immediate Resistance level: 148.95
Immediate support level: 147.20
HOW TO TRADE USD/JPY
USD/JPY, after a sharp decline, found support and rebounded, showing renewed strength. The pair broke above resistance but is now pulling back, retracing lower. If it holds around key Fibonacci levels and respects the support zone, the upside momentum could resume for another leg higher.