Momentum remains bearish, with key support at 149.00 and 148.57.
JPY strengthens as safe-haven demand rises amid US trade tensions.
A rebound above 150.00 could open the door for 151.14 and 152.38.
The USD/JPY begins Tuesday’s Asian session unchanged after registering losses of 0.74% on Monday. Soft US data and tariffs on Mexico, Canada, and China beginning on March 4 keep the Greenback on the backfoot against most G7 currencies. The pair trades at 149.59, up 0.06%.
USD/JPY Price Forecast: Technical outlook
After posting solid gains in the last week, the USD/JPY began the current one negatively as Japanese Yen (JPY) buyers entered the market at a better price. This followed an eight-day rally that witnessed an appreciation of 3.87% for the JPY, which drove the pair from 154.55 to 148.57.
Momentum remains tilted to the downside, as depicted by the Relative Strength Index (RSI). With that said, the USD/JPY's first support would be 149.00. Once surpassed, the next stop would be the February 25 low of 148.57, followed by the September 30 swing low of 141.64.
On the other hand, if USD/JPY recovers and climbs past 150.00, look for a retest of the Senkou Span A at 151.14 before challenging the Kijun-sen at 152.38.
USD/JPY Price Chart – Daily
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