Recent Performance:
Price Movement: On Friday, USD/JPY declined by over 0.3%, trading near 150.50 during the North American session. This occurred despite the United States core Personal Consumption Expenditure (PCE) Price Index for February being higher than expected at 2.8% year-on-year, surpassing both the anticipated and prior rate of 2.7%.
Technical Analysis:
Support and Resistance Levels: The pair's recent recovery reached 151.20 but retreated before testing the 151.29 cluster resistance, which aligns with the 38.2% retracement of the 158.86 to 146.52 decline. A break below the 149.53 minor support suggests the corrective recovery may have ended, possibly leading to a retest of the 146.52 low. A firm break below this level could extend the decline towards the 139.57 support. Conversely, a decisive move above the 151.23/151.29 resistance zone would shift the bias back to the upside, targeting the 154.79 resistance level.
Technical Indicators: The technical rating for USD/JPY is currently neutral on both the 1-week and 1-month timeframes, indicating no clear directional bias in the short to medium term.
Fundamental Factors:
Economic Data: The unexpected rise in the US core PCE inflation rate to 2.8% year-on-year for February suggests ongoing inflationary pressures, which could influence the Federal Reserve's monetary policy decisions.
Trade Policies: Recent tariff announcements and other trade uncertainties have contributed to market volatility, affecting currency valuations and investor sentiment.