- USD/JPY is extending losses on the week, down 0.62%.
- Worries over war between Russia and Ukraine dampen market sentiment, lifting safe-haven pairs.
- USD/JPY Technical Outlook: Bias to the upside, although a daily close below 114.40 could shift the pair to neutral.
The USD/JPY is under pressure for the second day in a row amid market angst over war fighting between Russia and Ukraine. Additionally, the 10-year Treasury bond yield is closely correlated to the USD/JPY pair and is down 14 basis points (bps) to 1,692%. That said, USD/JPY is trading at 114.84 at press time.
Geopolitical tensions keep market sentiment depressed. In the FX space, safe-haven pairs are higher, while risk-sensitive currencies have recently pared early gains and others posted losses.
USD/JPY Price Forecast: Technical Outlook
The Asian session on Tuesday saw a 40 pip move higher, posting the daily high of March 1 at 115.28, a few pips above the daily pivot point. However, it appeared to be a profit-taking move, resuming its downtrend caused by the Russia-Ukraine war headlines, posting a daily low at 114.69.
USD/JPY is biased to the upside, as shown by daily moving averages (DMAs) located above the exchange rate. However, a daily close below 114.40 could flip the pair to neutral.
The first USD/JPY support would be the Feb 24 low at 114.40. A sustained break could pave the way for more losses, with the 114.00 mark as second support. Once cleared, the next stop would be the Jan 24 daily low at 113.47.
To the upside, the first USD/JPY supply zone would be the 50-day moving average at 114.97. A break of the latter would expose Feb 25 at 115.76, followed by the yearly high at 116.35.
Additional technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
