USDJPY lifted by renewed risk appetite, but clear directional signals remain elusive

USDJPY remains supported, as the rebound from the multi-month low at 139.88 continues to hold above the broken Fibonacci level at 142.55 (23.6% of the 151.20–139.88 decline, reinforced by the 10-day moving average) for a third straight day.

The yen had gained over 10% from its January lows amid heightened concerns over U.S. trade tariffs and fears of their global economic fallout. However, recent signs of easing tensions between the U.S. and China have reduced safe haven demand, potentially weighing further on the yen if the situation continues to stabilize.

Friday’s advance fully erased Thursday’s pullback, keeping hopes alive for a test of the key Fibonacci resistance at 144.21 (38.2% retracement). A break above this level would strengthen the bullish structure and signal a deeper recovery.

Still, caution is warranted as daily technical indicators remain broadly bearish—momentum is negative and the stochastic oscillator is in overbought territory—suggesting the rebound may lose steam.

Focus remains on key levels at 142.55 and 144.21, as a clear reaction at either could offer stronger directional cues.

Res: 143.85; 144.21; 144.78; 145.54
Sup: 142.55; 141.65; 141.41; 140.47