It is struggling at 144.00 after hitting a two-week high

• USD/JPY pulls back from a two-week high of 144.68, dragged down by falling US Treasury yields.
• Technical indicators maintain a bearish stance, with the pair below the Ichimoku Cloud and 200-DMA suggesting more downside.
• Key supports identified at the September 20 low of 141.73 and the September 16 low of 139.58.
• For a bullish reversal, USD/JPY needs to break the Kijun-Sen at 143.44, with other obstacles at 144.00 and the recent high of 144.68.

USD/JPY is retreating after hitting a two-week high of 144.68, slipping about 0.28%. The greenback is hurt by worse-than-expected US data and falling US Treasury yields. That and investors pricing in a 50 basis point (bps) rate cut by the Fed undercut the pair, which is trading at 143.14.

USD/JPY Price Forecast: Technical Insights

Despite testing the 144.00 figure for three consecutive trading days, the pair remains in a sustained downtrend. USD/JPY buyers failed to capture the aforementioned price level, causing a decline on Tuesday.

The Relative Strength Index (RSI) suggests that momentum favors sellers. USD/JPY staying below the Ichimoku Cloud (Kumo) and 200-day moving average (DMA) could pave the way for lower prices to be tested.

The next critical level of support will be the September 20 low of 141.73, before falling to the September 16 low of 139.58.

Conversely, if USD/JPY were to rally towards the Kijun-Sen at 143.44 and break this level, the pair could look to challenge 144.00. Further upside is seen during the two-week high of 144.68.

USD/JPY Price Action – Daily Chart