USD/JPY: Downside bias – OCBC

USD/JPY drifted lower this morning, breaking past 144-support. Pair was last at 142.86 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Risks remain skewed to the downside

"Tankan survey came in better than expected for large and small manufacturers, supporting the view for BoJ policy normalisation. Elsewhere, Japan’s chief trade negotiator Akazawa said that Japan is still exploring if it is possible to reach a trade agreement ahead of 9 Jul deadline."

"Trump had threatened to impose a fresh tariff rate on Japan and commented on Japan not importing US rice when Japan is facing a massive rice shortage."

"Bullish momentum on daily chart faded while RSI continues to fall. Risks remain skewed to the downside. Support next at 142.50 levels. Resistance 144.40/50 levels (23.6% fibo, 21, 50 DMAs), 146.40 (100 DMA) and 147.15 (38.2% fibo retracement of 2025 high to low."