The USD/JPY pair is maintaining a downward bias, with short-term buyer momentum facing obstacles at 146.93 (Senkou Span A) and 148.46 (Kijun-Sen). The key level to watch for a bullish shift is at 149.39, the peak from previous trading sessions.
Although mixed RSI signals suggest short-term buyer dominance, the broader trend remains unclear. A drop below 145.39 (Tenkan-Sen) could trigger further losses, with support levels at 143.44 (August 26 low) and 141.69 (August 5 low).
USD/JPY Price Forecast: Technical Outlook
The USD/JPY pair recently rallied above the 146.00 level, supported by a rise in US Treasury bond yields. The latest move has brought the pair closer to the 146.17 mark, following a bounce from daily lows at 145.56.
Despite surpassing the Tenkan-Sen, the USD/JPY remains downward biased. The Relative Strength Index (RSI) indicates mixed momentum, with short-term buyers needing to break through key resistance levels to shift the trend to bullish.
Short-term buyers must push the price above 146.93 and 148.46 to target the cycle high at 149.39. Conversely, a move below 145.39 could lead to further losses, with support levels at 143.44 and 141.69.
USD/JPY Price Action – Daily Chart
Analysis
The USD/JPY pair is currently facing key resistance levels that need to be broken for a potential bullish shift. Short-term buyer momentum is present, but the broader trend remains unclear. Traders should watch for a move above 146.93 and 148.46 to confirm a bullish outlook, while a drop below 145.39 could signal further losses. Understanding these technical levels can help traders make informed decisions in the forex market.