USD/JPY stretches lower for the second straight day, trading around 147.30 during the European session on Tuesday. The 14-day Exponential Moving Average (EMA) at 147.06 appears as the immediate support, in conjunction with the psychological level at 147.00.
A collapse below the psychological support level could push the USD/JPY pair to the test support zone around 23.6% Fibonacci retracement level at 146.78 followed by the important level at 146.50. A collapse below the support zone could push the USD/JPY pair to navigate the area around the psychological support at 146.00 before the 38.2% Fibonacci retracement level at 145.53 lined up with the major support at 145.50.
The technical analysis of the Moving Average Convergence Divergence (MACD) for the USD/JPY pair suggests bullish sentiment in the market with the MACD line positioning above the centreline and showing a divergence above the signal line. Additionally, the lagging indicator 14-day Relative Strength Index (RSI) residing above the 50 level suggests a confirmation of a prevailing bullish momentum for the pair.
On the upside, the USD/JPY pair may encounter a barrier around the significant level of 147.50, with additional resistance posed by the psychological barrier at 148.00. A decisive breakthrough above this psychological resistance level could provide support for the pair to advance towards the major level at 148.50. Further upward momentum may lead the pair to approach the previous week's high at 148.69, followed by January’s high at 148.80.