USD/JPY Price Forecast: Plunges below 144.00 as downtrend resumes

• USD/JPY declines to 143.77, weighed by falling US 10-year Treasury yields and bearish market sentiment.
• Key support at 143.45 is now in focus, with further downside risks toward the 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 during the North American session and fell below 144.00 for the first time since last Wednesday. At the time of writing, the major is at 143.77, losing more than 1%.

Softer than expected, US JOLTS data for July increased speculations that the Federal Reserve will lower rates at the upcoming meeting, being the only doubt about the size of the cut. Consequently, that weighed on the closely correlated US 10-year Treasury note yield with the USD/JPY, with the former extending losses by almost 2% at 3.757%.

USD/JPY Price Forecast: Technical outlook

The USD/JPY resumed its downtrend after registering a leg-up from 143.44 (August 26) to 147.21 (September 3 high), sinking following the US data release, as momentum turned bearish.

The Relative Strength Index (RSI) remained bearish, but its slope shifted upwards to downwards, a sign of a trend shift in the short term.

The USD/JPY first support would be the August 26 daily low of 143.45. A breach of the latter would expose key psychological support levels, like the 143.00 mark, followed by the 142.50 and 142.00. Once hurdled, the next stop would be the August 5 low of 141.69.

For bulls to regain control, they must regain 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