It falls below 144.00 as the downtrend resumes

• USD/JPY falls to 143.77, weighed down by lower US 10-year Treasury yields and bearish sentiment.
• Key support at 143.45 is now in focus, with further downside risks towards the 143.00 and 142.50 levels.
• Bulls need to recover Kijun-Sen at 148.45 to regain control, with 150.00 acting as critical resistance.

USD/JPY tumbled late in the North American session and fell below 144.00 for the first time since last Wednesday. At the time of writing, the major is at 143.77, losing more than 1%.

Softer than expected, US JOLTS data for July raised speculation that the Federal Reserve will cut interest rates at its next meeting, with the only doubt over the size of the cut. Consequently, this weighed on the 10-year US Treasury yield closely correlated with USD/JPY, with the former extending losses by nearly 2% to 3.757%.

USD/JPY Price Forecast: Technical Insights

USD/JPY resumed downtrend after making advance from 143.44 (26 August) to 147.21 (high since 3 September), falling after US data as momentum turned bearish .

The Relative Strength Index (RSI) remained bearish, but its slope shifted upward to bearish, a sign of a short-term trend change.

The first USD/JPY support would be the August 26 daily low of 143.45. A breach of the latter would expose key psychological support levels such as the 143.00 mark, followed by 142.50 and 142.00. With obstacles, the next stop would be 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