- USD/JPY drops to 143.77, weighed down by falling 10-year US Treasury bond yields and bearish market sentiment.
- Key support at 143.45 is now in focus, with further downside risks towards 143.00 and 142.50 levels.
- Bulls need to reclaim the Kijun-Sen at 148.45 to regain control, with 150.00 acting as a critical resistance.
The USD/JPY collapsed late in the North American session and fell below 144.00 for the first time since last Wednesday. At the time of writing, the pair is at 143.77, losing more than 1%.
Weaker-than-expected US JOLTS data for July raised speculation that the Fed will cut rates at the next meeting, with the only question being the size of the cut. Consequently, that weighed on the closely correlated 10-year US Treasury bond yield to USD/JPY, with the former extending losses by almost 2% to 3.757%.
USD/JPY Price Forecast: Technical Outlook
USD/JPY resumed its downtrend after posting a rally from 143.44 (Aug. 26) to 147.21 (Sep. 3 high), plunging after the release of US data as momentum turned bearish.
The Relative Strength Index (RSI) remained bearish, but its slope changed from ascending to descending, a sign of a short-term trend change.
The first support for the USD/JPY would be the August 26 daily low of 143.45. A break of the latter would expose key psychological support levels such as the 143.00 level, followed by 142.50 and 142.00. Once overcome, the next stop would be the August 5 low of 141.69.
For the bulls to regain control, they must reclaim the Kijun-Sen at 148.45 before reclaiming the 150.00 figure above the latest cycle high of 149.39.
USD/JPY Price Action – Daily Chart
Japanese Yen PRICE Today
The table below shows the Japanese Yen (JPY) exchange rate against major currencies today. The Japanese Yen was the strongest currency against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | 0.00% | -0.03% | 0.00% | 0.06% | -0.06% | 0.14% | |
| EUR | -0.01% | 0.03% | -0.02% | 0.00% | 0.04% | -0.02% | 0.15% | |
| GBP | -0.00% | -0.03% | -0.04% | 0.03% | 0.04% | -0.04% | 0.02% | |
| JPY | 0.03% | 0.02% | 0.04% | 0.02% | 0.07% | 0.02% | 0.09% | |
| CAD | 0.00% | -0.01% | -0.03% | -0.02% | 0.06% | -0.03% | 0.02% | |
| AUD | -0.06% | -0.04% | -0.04% | -0.07% | -0.06% | -0.03% | -0.03% | |
| NZD | 0.06% | 0.02% | 0.04% | -0.02% | 0.03% | 0.03% | 0.06% | |
| CHF | -0.14% | -0.15% | -0.02% | -0.09% | -0.02% | 0.03% | -0.06% |
The heatmap shows percentage changes of major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change shown in the chart will represent the JPY (base)/USD (quote).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
