USD/JPY Price Analysis: Holds losses below 142.50, support appears at seven-month lows

• USD/JPY could retest the seven-month low of 141.61, recorded on Thursday.
• If the 14-day Relative Strength Index falls below the 30 level, it could potentially trigger a short-term corrective rebound.
• The primary initial resistance is located near the nine-day EMA at 143.80.

USD/JPY inches lower after registering gains in the previous session, trading around 142.40 during the Asian session on Friday. An analysis of the daily chart showed the pair moves downward within a descending channel, indicating a confirmed bearish bias.

The USD/JPY pair continues to trade below the nine-day Exponential Moving Average (EMA), signaling subdued short-term momentum. Meanwhile, the 14-day Relative Strength Index (RSI) hovers just above the 30 level, further supporting the ongoing bearish outlook. A drop below the 30 mark could suggest an oversold condition, potentially triggering a short-term corrective rebound.

On the downside, the USD/JPY pair may revisit the seven-month low of 141.61, marked on Thursday, followed by the descending channel’s lower boundary near 140.80. A decisive break below this channel could reinforce the bearish bias and open the door for a move toward 139.58 — the lowest level since July 2023, last seen in September 2024.

To the upside, initial resistance is seen at the nine-day EMA around 143.80. A breakout above this level could boost short-term momentum and pave the way for a test of the descending channel’s upper boundary near 146.30. 

Further resistance is located at the 50-day EMA at 148.30, followed by the two-month high of 151.31, recorded on March 3.

USD/JPY: Daily Chart