USD/JPY Price Forecast: Downtrend Resumed, Boosted By US Yields Falling
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- The downtrend in the USD/JPY pair continued, as downward momentum accelerated after volatility from the US Nonfarm Payrolls data.
- Key support levels include 142.50, 142.00, and Friday's low of 141.77, with further downside likely if these figures are breached in the coming days.
- Resistance stood at the 143.44 level, with higher targets seen at the 144.49 (Tenkan-Sen) and 145.00 (Senkou Span A) formations.
The USD/JPY currency pair extended its losses late in Friday's North American session, as its downtrend was bolstered by the losses seen in the US 10-year Treasury note. The greenback recovered some ground against most G8 FX currencies, except safe-haven currencies like the Japanese yen.
USD/JPY Technical Outlook
The USD/JPY downtrend continued after the latest US Nonfarm Payrolls report sparked volatility in the pair, which seesawed within a 230-pip range on the day. However, as the dust settled, sellers remained in charge.
Momentum had accelerated to the downside, confirmed by the Relative Strength Index (RSI) aiming lower, which is often an indication of a strong trend.
The USD/JPY pair's first support would be the psychological level of 142.50. Once surpassed, the next stop would be the 142.00 mark, followed by Friday's low of 141.77. If those two levels were cleared, the drop could extend toward the Aug. 5 low of 141.69.
On the other hand, the first resistance would be the Aug. 26 daily low of 143.44. A breach of the latter would expose key resistance levels. First, the Tenkan-Sen structure would be seen at the 144.49 mark, followed by the Senkou Span A at 145.00. Up next would be the Kijun-Sen formation at the 145.73 level.
USD/JPY Price Action – Daily Chart
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