Downtrend resumes but buyers retake 143.00

• USD/JPY remains under pressure near 143.39, with momentum indicators favoring a bearish continuation towards the 143.00 and 142.50 support levels.
• Failure to decisively clear 143.44 may provide a recovery opportunity for USD bulls if US Nonfarm Payrolls data impresses.
• Key resistance lies at 145.03 (Tenkan-Sen), with other obstacles at 145.73 (Kijun-Sen) and the 150.00 figure.

USD/JPY extended its losses for a third straight day, hitting a four-week low of 142.85, but traders lifted the pair, which ended Thursday’s session down 0.21%. As the Asian session begins on Friday, the pair is trading at 143.39, essentially unchanged.

USD/JPY Price Forecast: Technical Insights

USD/JPY fell towards multi-week lows, but failed to decisively break the August 26 low of 143.44. This may pave the way for a recovery for USD bulls, which have struggled with the decline in US 10-year yields.

Despite this, the momentum favors further downside, as shown by the Relative Strength Index (RSI). With this report and the first level of the August US non-farm payrolls report looming, the path of least resistance is for a downward continuation.

USD/JPY’s first support would be the August 26 daily low of 143.44. A breach of the latter would expose key psychological support levels such as the 143.00 mark. This would be followed by the current week’s low of 142.85, ahead of the key psychological levels of 142.50 and 142.00.

Conversely, an upbeat US jobs report will expose key resistance levels. First, the Tenkan-Sen will be at 145.03, followed by the Kijun-Sen at 145.73, before recovering the 150.00 figure above the last cycle high of 149.39.

USD/JPY Price Action – Daily Chart