USD/JPY Analysis: Bears Put Pressure on Key Support
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As shown on the USD/JPY chart, the pair is hovering near key support at ¥142.50 per US dollar.
While demand was strong enough at the end of May to lift the exchange rate from this level to a peak around ¥146.00, USD/JPY has once again retreated to the ¥142.50 area.
Why has USD/JPY declined?
On one hand, the US dollar has weakened following disappointing economic data released yesterday. The figures revealed a sharp slowdown in private sector hiring and an unexpected contraction in the US services sector, fuelling concerns over a possible recession.
On the other hand, yen strength is being driven by the Bank of Japan's apparent willingness to raise interest rates — reaffirmed on Tuesday by Governor Kazuo Ueda — which has reinforced expectations of a tightening cycle.
USD/JPY Technical Analysis
In early June, the ¥142.50 level had already shown its role as support (as indicated by the arrow), but it is once again under pressure — a sign of bearish dominance.
Yesterday, sellers broke through local support at ¥143.57, which may now act as resistance.
More US economic data is due on Friday, with key labour market figures set to be released at 15:30 GMT+3. These could potentially trigger a bearish attempt to break below the ¥142.50 level on the USD/JPY chart.
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