Technical Analysis:
USD/JPY traded cautiously within a narrow range of 142.61-143.60 on Tuesday, reflecting considerable hesitation among market participants as they await pivotal monetary policy signals from Fed Chair Jerome Powell on Wednesday and BOJ board member Junko Nakagawa’s remarks on Thursday. The formation of an indecisive doji candle near the lower Bollinger band boundary underscores market uncertainty and suggests potential bearish continuation if immediate support levels fail. Additionally, declining trading volumes and muted volatility emphasize the lack of conviction ahead of significant macroeconomic and policy events.

Technically, the bearish narrative remains dominant, characterized by a clear series of lower highs formed over recent sessions, reinforcing downward pressure. Critical near-term support rests precisely at Friday’s low of 142.05, and a definitive close below this point would represent a bearish confirmation, likely initiating further selling pressure toward deeper technical targets around 141.65-68 (September 20 and August 5 lows). Beyond this support, bears may set their sights on the significant low of 140.92 established on September 16, particularly if trade discussions result in a pessimistic market reaction or if Powell signals a more dovish Fed outlook.

Conversely, bullish recovery faces notable technical hurdles, starting with immediate resistance at 144.36 (Monday's session high), followed by a more substantial barrier at the 144.55-144.60 zone (April 4 and April 11 lows). USD/JPY bulls must reclaim and sustainably hold above 144.60 to mitigate bearish momentum effectively and shift sentiment toward neutral territory. Risk reversal indicators also suggest traders remain wary of downside risks ahead of key central bank communications and U.S.-Japan trade negotiations. Thus, any bullish moves will likely face intense selling pressure until clearer directional cues emerge from the upcoming policy events.