• USD/JPY erased early losses against on Friday as escalating geopolitical tensions and global market jitters drove investors back into the greenback as a safe-haven.
• Risk-off flows, triggered by developments in the Middle East and concerns over U.S. economic stability, helped support the dollar across the board, despite ongoing uncertainty around Fed policy and domestic issues like fiscal gridlock and civil unrest.
• The pair remains sensitive to changes in risk sentiment, with safe-haven demand for the yen competing against broader demand for the U.S. dollar in times of global stress.
• At GMT 06:52, the dollar was trading up 0.12% at 143.69 against Japanese yen .
• Technical signals are strongly bearish as RSI is at 47, daily momentum studies 11, 14 and 21 DMAs are trending down.
• Immediate resistance is located at 144.00(Psychological level), any close above will push the pair towards 145.41 (38.2%fib).
• Support is seen at 142.78(23.6%fib), and break below could take the pair towards 142.06 (Lower BB)
Recommendation: Good to sell around 143.80, with stop loss of 144. 50 and target price of 142.80
