USD/JPY Price Forecast: Dips To 4-Week Lows, Before Trimming Some Losses
Yen. Image Source: Pixabay
The USD/JPY posted mild losses of 0.17% after hitting a new four-week low of 142.68, sponsored by upbeat economic data in Japan. However, good US jobs and business activity data, along with a hawkish Fed Chair Jerome Powell, lent a lifeline to the US dollar, which staged a comeback versus the Japanese Yen (JPY). At the moment, the pair trades at 143.77.
USD/JPY Price Forecast: Technical outlook
The USD/JPY remains neutral-to upward biased if the pair remains above the May 27 swing low of 142.11. However, upside movements could be capped by strong resistance at the bottom of the Ichimoku Cloud (kumo) at around 144.25-50. This, along with the Relative Strength Index (RSI) remaining bearish, suggests that consolidation lies ahead.
For a bullish case, the USD/JPY must clear 144.50, and the confluence of several moving averages, such as the 20- and 50-day SMAs. Once surpassed, the next area of interest would be the Kijun-sen at 145.07, ahead of the Tenkan-sen at 145.35. A breach of the latter will expose the 100-day SMA at 146.32, followed by the June 23 high of 148.02.
On the other hand, if USD/JPY falls below 143.00, a further downside is expected to occur, with a potential target of 142.00.
USD/JPY Price Chart – Daily
(Click on image to enlarge)
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