It collapses on sonic BoJ tone, firmly below 146.00

• USD/JPY is forming a bearish swallow pattern, signaling the potential for further downside in the near term.
• Momentum RSI supports sellers, with first support targeted at Tenkan-Sen 145.33 and psychological 145.00.
• Bulls need to recover Kijun-Sen at 148.45 with 150.00 needed to reverse the bearish trend.

USD/JPY fell late in the North American session, losing more than 0.80% or more than 100 pips. It is now trading at 145.68.

During the overnight session for US traders, headlines revealed that Bank of Japan (BoJ) Governor Kazuo Ueda reiterated his tiresome stance on remarks to a government panel. This was the main driver of the pair, along with the decline in the yield on the 10-year US Treasury note.

USD/JPY Price Forecast: Technical Insights

Technically, USD/JPY is trending down, forming a “bear wrap” chart pattern. This suggests more downside is in sight, further confirmed by the Relative Strength Index (RSI), reassuring that momentum is supporting sellers.

With the path of least resistance sloping down, USD/JPY’s first support would be the Tenkan-Sen at 145.33. If it is thwarted, the next stop would be the 145.00 figure, before testing the next low of the cycle at 143.45, the daily low of August 26. This would be the last line of defense for the bulls before the August 5 low of 141.69.

For the bulls to regain control, they need to regain the Kijun-Sen at 148.45 before retrieving the 150.00 figure above the last cycle high of 149.39.

USD/JPY Price Action – Daily Chart