USD/JPY Price Analysis: Extends its upside near 143.30 amid USD demand

• USD/JPY gains momentum near 143.30, up 0.56% for the day.
• The pair stands above the 50- and 100-hour EMAs with an upward slope on the four-hour chart.
• The immediate resistance emerges at 143.45; the key contention for USD/JPY is located at 143.00.

The USD/JPY pair extends its upside and reclaims the 143.00 barrier heading into the early European session on Tuesday. The major currently trades around 143.30, gaining 0.54% on the day. The hawkish comment from Federal Reserve (Fed) policymakers boosts the Greenback against the Japanese Yen.

That said, Atlanta Fed Governor Michelle Bowman indicated that additional rate increases will likely be necessary to return inflation to the target level. Meanwhile, BoJ policymakers added that it’s necessary to maintain ultra-low interest rates. This, in turn, acts as a tailwind for USD/JPY.

According to the four-hour chart, the USD/JPY pair stands above the 50- and 100-hour Exponential Moving Averages (EMAs) with an upward slope, which means the path of least resistance is to the upside for the major pair.

USD/JPY’s immediate resistance emerges at 143.45 (the upper boundary of the Bollinger Band). Any meaningful follow-through buying could pave the way to the next hurdle at 143.90 (High of August 3). Further north, 144.65 will be the additional upside filter.

On the flip side, the key support for USD/JPY is located at 143.00, representing a psychological round mark. The next stop for the pair is seen at 142.45 (the midline of the Bollinger Band) en route to 142.10 (the 50-hour EMA), followed by 141.70 (the 100-hour EMA) and 141.60 (the lower limit of the Bollinger Band).

It’s worth noting that the Relative Strength Index (RSI) stands above 50, which indicates that the upside momentum has been activated for the time being.

USD/JPY four-hour chart