USD/JPY PRICE FORECAST: DROPS BELOW 147.00 AS DOWNTREND RESUMES
- USD/JPY falls after failing to clear 148.00 resistance, resuming its downtrend below 147.00.
- Bearish momentum strengthens; RSI near oversold, signaling potential for further declines.
- Below 146.00, key support levels include 145.44, 144.28, and 143.61; above 147.00, resistance targets are 147.89 and 148.45.
The USD/JPY retreats after failing to surpass the 148.00 resistance and extends its losses below the 147.00 mark, snapping three days of gains. At the time of writing, the major trades at 146.58, diving 0.48%.
USD/JPY Price Forecast: Technical outlook
On Thursday I wrote, “the USD/JPY is bearishly biased despite registering a recovery that saw the pair rally from under 144.00 to the current exchange rate after dovish comments by a Bank of Japan Deputy Governor.”
Once risk appetite returned, the USD/JPY resumed its downtrend. Buyers failed to clear the weekly high of 147.89, which exacerbated the pair’s fall beneath 147.00.
Momentum is bearish, although the Relative Strength Index (RSI) hovers near oversold condition.
If USD/JPY drops below the 146.00 mark, sellers will undoubtedly challenge the August 8 low of 145.44, followed by the August 7 bottom at 144.28. Once those levels are surpassed, the next support would be the August 6 daily low at 143.61, followed by the latest cycle low of 141.69.
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