USD/JPY retreats from 145.00, pressured by falling US Treasury yields and a weakening Dollar.
Bearish trend outlook; momentum favors sellers with RSI staying negative.
Key supports: August 26 low at 143.44, then 143.00, 142.00, and August 5 low at 141.69.
Upside: Break above 144.00 targets resistance at 146.42 (Tenkan-Sen) and potentially 147.00.
The USD/JPY retreats from around the 145.00 area and tumbles under the 144.00 figure as US Treasury bond yields edge lower. The Greenback extends its losses, as seen by the US Dollar Index (DXY), which tracks a basket of six currencies against the buck. It dropped 0.31% to 100.54. At the time of writing, the major trades at 143.94, down by 0.40%.
USD/JPY Price Forecast: Technical outlook
The USD/JPY continues to trade “relatively sideways,” with sellers stepping in ahead of Friday's release of crucial US inflation data. Nevertheless, from a technical point of view, the pair will re-test August’s 5 daily low of 141.69 if traders clear some hurdles on the way south.
As of writing, momentum favors sellers, as portrayed by the Relative Strength Index (RSI), which remains bearish. With this said, USD/JPY's first support level would be the August 26 swing low of 143.44. Once surpassed, the next stop would be the psychological 143.00 figure, followed by the 142.00 figure, before challenging the August, as mentioned above, 5-cycle low.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.