USDJPY – Pullback needs to hold above 146.70 to maintain broader bullish structure

USDJPY remains in a narrow consolidation phase following Monday’s decline, which found temporary support around the 147 level.

The pullback from last week’s three-month high at 149.18 has paused, but there is still room for further downside extension.

Key support lies at 146.70—the 38.2% Fibonacci retracement of the 142.68–149.18 rally—which is expected to act as a strong floor. Holding above this level would suggest a healthy correction within the broader bullish trend, with scope for bulls to regain control.

However, repeated daily closes below 147.65 (broken 10-day moving average and 23.6% Fibo) would keep the downside exposed in the near term. Still, the overall structure on the daily chart remains bullish, favoring a limited pullback before another move higher.

Fundamentals are likely to play a crucial role going forward, particularly with market attention fixed on the August 1 tariff deadline.

If no trade agreement is reached by then, renewed risk aversion could drive safe-haven flows into the yen. In this case, a decisive break below 146.70 could trigger a sharper decline, exposing further support levels around the 146 handle (aligned with the 20DMA, 50% retracement, and 100DMA), which would signal a deeper correction and weaken the near-term outlook.

Res: 147.65; 148.00; 148.66; 149.00
Sup: 147.00; 146.70; 146.19; 145.93