USD/JPY: 2-way trades – OCBC

USD/JPY was a touch softer. Pair was last at 144.17 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Some consolidation in USD/JPY is likely

"Daily momentum turned mild bearish but decline in RSI shows signs of moderation. 2-way trades likely. Support next at 143.10, 142.50 levels. Resistance 144.40/50 levels (23.6% fibo, 21, 50 DMAs), 146.40 (100 DMA) and 147.15 (38.2% fibo retracement of 2025 high to low."

"BoJ’s Ueda said Japan’s underlying inflation is still below 2%, and more data is needed on wage gains and tariff effects before tightening further. He reaffirmed that current policy remains accommodative and below the neutral rate – nothing new."

"Instead, we opined the concern is around US tariffs on Japanese goods after Trump doubled down, looking to impose 30 – 35% tariff on Japan. Some consolidation in USD/JPY is likely in the range of 142.50 – 144.60 as markets monitor if a deal will be reached before 9th July."