It is clinging to gains after failing to break 144.00

• USD/JPY’s “shooting star” candlestick suggests a possible bearish continuation despite current buyer momentum.
• Key support: 19 September low at 141.88, 140.44 and YTD low at 139.58.
• Buyers need to break the 143.94 resistance, with the next target at Kijun-Sen at 144.48 for bullish control.

USD/JPY held on to gains following Wednesday’s Federal Reserve decision, but traded well below the daily peak of 143.94 as the greenback posted losses.

On the data front, the US docker posted initial jobless claims for the past week, which fared better than expected but failed to boost the US dollar. Meanwhile, traders are eyeing the release of Japanese inflation data and the Bank of Japan’s monetary policy decision.

USD/JPY Price Forecast: Technical Insights

The downtrend will continue despite recovering some ground. As Thursday’s session comes to an end, USD/JPY pulled back from the weekly high, forming a “shooting star” candlestick. This means bears are entering the market, paving the way for a retest of the year-to-date (YTD) low of 139.58.

In the short term, momentum favors buyers as depicted by the Relative Strength Index (RSI), although in the long term, the RSI is bearish.

For a bearish continuation, USD/JPY needs to break the September 19 low of 141.88, followed immediately by the Tenkan-Sen at 141.76. These levels have softened and the next area of ​​demand would be the daily low of 140.44 on September 18, followed by the YTD low of 139.58.

Instead, buyers need to break the September 19 high of 143.94 before testing the Kijun-Sen at 144.48.

USD/JPY Price Action – Daily Chart