Rising amid rising US yields, but still bearish

• USD/JPY remains below the Ichimoku Cloud and 200-DMA at 151.22, maintaining the downtrend as selling pressure eases.
• The RSI is trending up, suggesting a potential short-term rally if USD/JPY breaks above 145.00.
• Resistance levels at 146.42 (Tenkan-Sen), 147.91 (Senkou Span A) and 149.39 (August 15 high).
• Below 144.00, key support at 141.69; further decline could target the psychological level 140.00.

The Japanese yen (JPY) lost ground against the greenback on Monday as USD/JPY rose 0.13% amid a rise in US Treasury yields. At the time of writing, the pair was at 144.59 after retracing its daily lows of 143.44.

USD/JPY Price Forecast: Technical Insights

USD/JPY’s downtrend is intact as the exchange rate remains below the Ichimoku Cloud and 200-day moving average (DMA) at 151.22. However, sellers are losing momentum as depicted by the Relative Strength Index (RSI), remaining bearish but aiming higher. This could pave the way for an advance before testing lower prices.

If USD/JPY breaks above 145.00, the next resistance appears at Tenkan-Sen at 146.42, followed by Senkou Span A at 147.91. Further, it is seen at the Kijun-Sen confluence and the August 15 daily high of 149.39.

Conversely, if USD/JPY breaks below the 144.00 mark and the pair could decline towards the last low of the cycle, seen at 141.69, before challenging 140.00.

USD/JPY Price Action – Daily Chart