USD/JPY Price Analysis: Soars Past 140.00 Despite Weakening US Dollar, Eyes 141.00 Resistance

By Christian Borjon Valencia of FXStreet

Saturday, May 27, 2023 3:00 PM EDT

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The USD/JPY currency pair jumped past the 140.00 mark on Friday, despite US economic data suggesting a potential Fed rate hike.
Japanese Finance Minister Shunichi Suzuki encouraged market-determined currency rates, stating that he’s closely monitoring exchange-rate movements.
The USD/JPY pair, which looks poised to challenge the 142.00 level once it clears 141.00, found support at 139.89/140.00, with a deeper fallback to 137.26.

The USD/JPY currency pair rallied sharply past the 140.00 figure on Friday late in the New York session, after traveling towards its daily low of 139.49, before making a U-turn.

Solid economic data from the United States bolstered the odds for another rate hike by the Federal Reserve, as demonstrated by the market's reaction. US Treasury bond yields rose before reversing their course, while the US dollar weakened. At the time of writing, the USD/JPY was recently seen trading at around 140.60.

USD/JPY Price Analysis: Technical Outlook

After hitting a new year-to-date high of 140.72, the USD/JPY currency pair retraced somewhat but ultimately remained upward-biased. Once the USD/JPY pair cracked the Nov. 30 swing high of 139.89, buyers piled in to break the 140.00 figure despite Japanese Finance Minister Shunichi Suzuki saying that markets should set currency rates based on economic fundamentals. He stated that he’s watching exchange-rate moves closely.

During Friday’s session, the USD/JPY pair continued and extended its gains, but the pair lost momentum as the New York session began to wind down. However, if USD/JPY extends its gains past 141.00, the next resistance would be the 142.00 figure, ahead of testing the Nov. 22 high at 142.24.

Conversely, the USD/JPY pair's first support would be the 140.00 mark, ahead of falling to the 139.89 level. A dip below could clear the way for the pair to fall toward the Dec. 15 daily high at 138.17 before reaching the 20-day exponential moving average at 137.26.

USD/JPY Price Action – Daily Chart

USD/JPY Technical Levels

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