USD/JPY Price Forecast: Consolidates around 144.00 after over 1.60 % loss

• USD/JPY drops over 4.90% to a low of 141.69 during Asian session before rebounding to 144.16.
• Technical outlook: Downward bias with potential for mean-reversion move as RSI indicates overextension.
• Key resistance levels: 145.00, February 1 bottom at 145.89, and March 11 level at 146.48.
• Key support levels: 144.00, January 9 pivot low at 143.42, and August 5 bottom at 141.69.

The Japanese Yen extended its rally on Monday, registering more than 1.63% gains. This witnessed the USD/JPY drop over 4.90% during the Asian session to a low of 141.69 before trimming some losses and regaining the 144.00 mark. At the time of writing, the USD/JPY trades at 144.16, virtually unchanged as Tuesday’s Asian session begins.

USD/JPY Price Forecast: Technical outlook

The USD/JPY is downward biased yet has found a bottom at around 141.69. Once hit, buyers emerged at the bottom and lifted the exchange rate since the mid-North American session. The latest push saw spot prices above 144.00 as momentum shows the downtrend is overextended, as shown by the Relative Strength Index (RSI).

As the RSI lies beneath 20, the pair is subject to a mean-reversion move.

If USD/JPY climbs past 145.00, the next resistance will be on February 1, bottom at 145.89. Once surpassed, the March 11 146.48 emerges, followed by the 147.00 mark.

 Conversely, if USD/JPY extends its losses below 144.00, the next support would be the January 9 pivot low at 143.42, ahead of the August 5 bottom at 141.69.

USD/JPY Price Action – Daily Chart