USD/JPY minimal losses of 0.02% but holds below key 158.00 level.
Momentum shifts to sellers, with RSI indicating a neutral to bearish bias.
Key support levels at 157.14 and 156.91 could lead to further declines below 155.60.
The USD/JPY trades had minimal losses of 0.02%, yet they recovered some ground late in the North American session. The major exchanges hands at 157.94, below the 158.00 figure, following last week’s intervention that dragged the pair from around 161.90 toward 157.50.
USD/JPY Price Analysis: Technical outlook
Although the USD/JPY price action remains above the Ichimoku Cloud (Kumo), indicating that the uptrend remains intact, the pair trades below the Tenkan and Kijun-Sen, breaching the Senkou Span A previous support turning resistance.
Momentum has shifted in the seller's favor, as depicted by the Relative Strength Index (RSI), hinting that the pair is neutral to bearishly biased.
Given the backdrop, the USD/JPY path of least resistance is downwards. Therefore, the USD/JPY's first support would be the July 15 low of 157.14. Once surpassed, the next support would be the Senkou Span B at 156.91, before cracking the Kumo, pushing the exchange rate below 155.60.
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