USD/JPY: Bearish bias on the daily charts – OCBC

USD/JPY continued to trade lower, tracking USD and UST yields lower. Last at 142.55 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

USD/JPY continues to trending lower aggressively

"On data release this morning, CPI came in hotter than expected, keeping BoJ policy normalisation plans alive. On tariff/trade development, Japan trade negotiator Akazawa will have the 3rd round of talks with US officials including Greer and Lutnick starting today over the weekend and will return to the US again to potentially meet with Bessent on 30 May."

"Overnight, PM Ishiba also held a 45 min phone call with Trump to exchange views on tariffs but did not mention anything specific about tariffs. Depending on situation, Ishiba may meet Trump in person next month."

"USD/JPY continued to trade lower. Daily momentum is mild bearish while RSI fell. Support next at 142.40, 142 levels. Resistance at 144.40/60 levels (21 DMA, 23.6% fibo retracement of 2025 high to low), 145.80 (50 DMA). We kept our short USD/JPY (entered at 148 as per FX Weekly 13 May), targeting a move towards 141. SL at 151."