USD/JPY extends its decline – OCBC

USD/JPY extended its decline following the broad decline in USD. USD/JPY was last at 143.74 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Bullish momentum on daily chart is fading

"USD/JPY extended its decline, tracking the broad decline in USD and concerns over reports on a potential Israel strike on Iran (leading to safe haven flows) while Japan’s plan to meet US during the G7 meeting (on 23 May) to discuss topics including FX kept the pair pressured."

"Bullish momentum on daily chart shows signs of fading while RSI fell. Support next at 142.30, 141.80 levels. Resistance at 144.40/50 levels (21 DMA, 23.6% fibo retracement of 2025 high to low), 146 (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."