USD/JPY: Rebound meets first resistance – OCBC

US Dollar (USD) short covering gathered pace vs. safe haven proxies. USDJPY was last at 145.30 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Bullish momentum on daily chart intact

"The recent US-UK deal and the upcoming US-China talks over the weekend further added momentum to the tariff de-escalation narrative. In addition, higher than expected USD/CNY fix for a handful of sessions this week further dampened the USDAsia selloff momentum and provided a bid tone for most USD-Asia, including USD/JPY."

"The recent FOMC outcome (no rush to cut) further provided a setup for unwinding USD shorts. On data release this morning, lower than expected cash earnings also dimmed market enthusiasm for BoJ normalisation, from a timing perspective."

"Bullish momentum on daily chart intact while RSI rose. Immediate resistance at 146.35 (50 DMA), 147.15 (38.2% fibo retracement of 2025 high to low). Support at 145.40, 142.5 (23.6% fibo)."