- USD/JPY has broken below a key support level and is falling further.
- The August 5 lows are the next target at 141.69.
USD/JPY is resuming its medium-term downtrend after a brief pause during August.
The pair has broken below the key lows of 143.45 (August 26 low), a bearish signal reversing the trend. Sellers are now eyeing the key lows of August 5 at 141.69.
USD/JPY 4-hour chart
USD/JPY is likely in a short-term downtrend and given the saying “the trend is your friend”, the odds favor further declines.
The pair is likely to test the lows of 141.69. A break below that would likely lead to further weakness towards the next support level at 140.44.
The Relative Strength Index (RSI) momentum indicator is in oversold territory, however, traders are advised not to add to their short positions. If the RSI breaks out of oversold territory, it will be a signal that an upside correction against the trend is developing.
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.
