The USD/JPY pair struggled to regain ground on Tuesday, trading around the 142.00 mark during North American hours after bouncing off earlier lows near 140.65. The pair's modest rebound came as markets stabilized but its gains remained capped amid lingering concerns over the Federal Reserve's autonomy. President Donald Trump's continued attacks on Fed Chair Jerome Powell—whom he called a "big loser"—have shaken confidence in the greenback's credibility. White House officials have acknowledged that the administration is exploring legal avenues to remove Powell, adding to market jitters.

The US Dollar Index (DXY) has recovered slightly to 98.50 but remains well below the psychological 100.00 level. Meanwhile, the Japanese Yen is benefiting from safe-haven demand and growing expectations that the Bank of Japan (BoJ) will continue to raise interest rates, even amid uncertainty over global tariffs. The continued lack of clarity around US-China trade policy has only strengthened the JPY's recent gains.

From a technical perspective, USD/JPY is showing a bearish structure despite a slight bounce today. The pair is trading near the top of its daily range (139.88–141.58), but the Relative Strength Index (RSI) is at the neutral level of 32.50 while the MACD continues to flash a sell signal. The 20-day (145.88), 100-day (151.52), and 200-day (150.31) Simple Moving Averages are all trending lower, supported by bearish signals from the 10-day EMA (143.06) and SMA (143.05). Resistance levels are found at 143.05, 143.06, and 144.87, while immediate support is at 141.05.

Unless US political tensions ease or macro data turns convincingly pro-USD, the bias for USD/JPY remains tilted to the downside. A drop below 141.00 could open the way for a retest of key levels at 139.60 and 138.00. (Newsmaker23)

Source: FXstreet