It rises to a two-week high below 147.00

• USD/JPY ended August above Kijun-Sen and Ichimoku Cloud, showing buyer strength; break above 152.00 needed to target YTD high of 161.95.
• The pair is consolidating in the 140.78-147.30 range inside the Ichimoku Cloud, indicating the potential for sideways trading. Break above 149.39 necessary for the continuation of the upward trend; a drop to 141.69 could test the Kumo bottom at 140.78.
• Buyers’ momentum is building, targeting the Kijun-Sen at 148.46. Watch resistance at 147.00 and 148.00; a break below Senkou Span A at 146.90 may lead to levels at 146.00 and Tenkan-Sen at 145.31, close to 145.00 support.

USD/JPY rose for a fourth consecutive day on Monday in early September, rising 0.49% amid poor liquidity conditions during the North American session. At the time of writing, the pair is trading at 146.87 after returning to a daily low of 145.78.

USD/JPY Price Forecast: Technical Insights

The USD/JPY monthly chart shows the pair falling towards 141.69, but belatedly recovering to close at 146.17, above the Kijun-Sen and the Ichimoku (Kumo) Cloud. Even though this suggests that buyers are in charge, the pair should break above 152.00 to retest the yearly (YTD) high at 161.95.

On a weekly basis, USD/JPY is consolidating around the top of the 140.78-147.30 range inside the Kumo, an indication of sideways trading. For buyers to resume the uptrend, they need to push prices above the last cycle high of 149.39. On the other hand, sellers need to break above 141.69 before testing the Kumo bottom at 140.78.

Meanwhile, the daily USD/JPY chart shows that buyers are regaining control. They could push prices towards the Kijun-Sen at 148.46, but first they need to clear key resistance levels. The first would be the 147.00 figure, followed by the 148.00 threshold.

Conversely, if the sellers move in and pull the price below the Senkou Span A at 146.90, that may pave the way for further downside. The next support would be the 146.00 mark, followed by the Tenkan-Sen at 145.31, before challenging 145.00.

USD/JPY Price Action – Daily Chart