If #USDJPY @ 141.544 cannot maintain a position above 141.50, it is anticipated to experience a decline.

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• USD/JPY is expected to show losses if fails to sustain above 141.50.

The pair currently trades last at 141.544.

The previous day high was 142.0 while the previous day low was 141.44. The daily 38.2% Fib levels comes at 141.79, expected to provide resistance. Similarly, the daily 61.8% fib level is at 141.66, expected to provide resistance.

The USD/JPY pair has faced stiff barricades around 142.15 in the European session. The asset is expected to deliver more weakness below 141.50 as the US Dollar Index (DXY) has shown a volatile action after facing stiff resistance around 102.60.

S&P500 futures have displayed significant losses amid caution in the market participants ahead of the US opening after an extended weekend. The risk appetite theme has been dented again as the street is mixed about the interest rate guidance from the Federal Reserve (Fed).

A moderate upside move in the USD Index has concluded now as investors are expecting that the Federal Reserve (Fed) will hike interest rates only one time despite Fed chair Jerome Powell has confirmed two rate hikes by year-end. Also, the US Treasury yields have softened following the footprints of the USD Index. The yields offered on 10-year US government bonds have dropped to near 3.79%.

Later, Fed Powell’s testimony will remain in the spotlight. Fed Powell is expected to deliver detailed guidance behind keeping interest rates steady in June’s monetary policy. Also, further guidance and the current condition of the banking crisis will be in focus.

On the Japanese Yen front, more than half of economists polled by Reuters favored that Japan’s government and the Bank of Japan (BoJ) will act to stop the yen’s decline if it depreciates to the 145 per U.S. dollar level. This could be done by a stealth intervention from the BoJ.

In the Asian session, Japan’s ministry reported mixed Industrial Production data (April). Monthly economic data surprisingly expanded by 0.7% while the street was anticipating a contraction of 0.4%. Annualized Industrial Production was contracted by 0.7%, higher than expectations of a 0.3% contraction.

Technical Levels: Supports and Resistances

USDJPY currently trading at 141.66 at the time of writing. Pair opened at 141.97 and is trading with a change of -0.22 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 139.94, 50 SMA 137.07, 100 SMA @ 135.13 and 200 SMA @ 137.23.

The previous day high was 142.0 while the previous day low was 141.44. The daily 38.2% Fib levels comes at 141.79, expected to provide resistance. Similarly, the daily 61.8% fib level is at 141.66, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 141.61, 141.24, 141.05
• Pivot resistance is noted at 142.17, 142.37, 142.73

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