The USD/JPY pair has experienced a decline to 143.77, influenced by the decrease in US 10-year Treasury yields and a bearish market sentiment. Key support now lies at 143.45, with potential downside risks towards the 143.00 and 142.50 levels. Bulls are looking to reclaim the Kijun-Sen at 148.45 to regain control, with a critical resistance at 150.00.
During the North American session, the USD/JPY dropped below 144.00 for the first time since the previous Wednesday, currently standing at 143.77 with a loss of over 1%. This decline can be attributed to softer-than-expected US JOLTS data for July, leading to speculations of a rate cut by the Federal Reserve in the upcoming meeting.
Technical Outlook
After a brief uptrend from 143.44 to 147.21, the USD/JPY reversed its course following the release of US data, signaling a bearish momentum shift. The Relative Strength Index (RSI) remains bearish, but with a slight upward to downward slope, indicating a potential short-term trend shift.
If the USD/JPY continues to decline, the first support level to watch is 143.45, followed by key psychological levels at 143.00, 142.50, and 142.00. On the upside, bulls need to surpass the Kijun-Sen at 148.45 and break above 150.00 to establish control over the pair.
Analysis and Conclusion
The recent decline in the USD/JPY pair can be attributed to falling US 10-year Treasury yields and a bearish market sentiment driven by expectations of a rate cut by the Federal Reserve. This development has implications for investors and traders, as it suggests potential further downside for the pair. Bulls will need to monitor key support and resistance levels to determine the future direction of the USD/JPY and make informed investment decisions.
Overall, the USD/JPY price analysis highlights the importance of staying informed about market developments and technical indicators to navigate the dynamic forex market effectively.