USD/JPY Price Analysis: Extends its losses below 115.00 amid plummeting US Treasury yields

• The USD/JPY is extending losses in the week, so far down 0.62%.
• Russia-Ukraine war concerns dampen the market mood,  lifting safe-haven peers.
• USD/JPY Technical Outlook: Upward biased, though a daily close below 114.40 could shift the pair to neutral.

The USD/JPY is under pressure for the second day in a row amid the market’s angst over Russia-Ukraine war tussles. Furthermore, the 10-year T-note closely correlated to the USD/JPY pair plunges 14 basis points (bps), sitting at 1.692%. That said, the USD/JPY is trading at 114.84 at press time.

Geopolitical tensions keep the market sentiment depressed. In the FX space, safe-haven peers rise, while risk-sensitive currencies, as of late, pared early gains, and others record losses.

USD/JPY Price Forecast: Technical outlook

Tuesday’s Asian Pacific session witnessed an upward move of 40-pips, recording March 1 daily high at 115.28, some pips above the daily pivot point. However, it appeared to be a profit-taking move, resuming its downward trend caused by Russia-Ukraine war headlines, recording a daily low at 114.69.

The USD/JPY is upward biased, as depicted by the daily moving averages (DMAs) located above the exchange rate. However, a daily close under 114.40 could shift the pair to neutral.

The USD/JPY first support would be February 24 low at 114.40. A sustained break could pave the way for further losses, with the 114.00 mark as the second support. Once cleared, the next stop would be January 24 daily low at 113.47.

Upwards, the USD/JPY first supply zone would be the 50-day moving average at 114.97. Breach of the latter would expose February 25 at 115.76, followed by the YTD high at 116.35.