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

• USD/JPY retreats from 145.00, pressured by falling US Treasury yields and a weakening Dollar.
• Bearish trend outlook; momentum favors sellers with RSI staying negative.
• Key supports: August 26 low at 143.44, then 143.00, 142.00, and August 5 low at 141.69.
• Upside: Break above 144.00 targets resistance at 146.42 (Tenkan-Sen) and potentially 147.00.

The USD/JPY retreats from around the 145.00 area and tumbles under the 144.00 figure as US Treasury bond yields edge lower. The Greenback extends its losses, as seen by the US Dollar Index (DXY), which tracks a basket of six currencies against the buck. It dropped 0.31% to 100.54. At the time of writing, the major trades at 143.94, down by 0.40%.

USD/JPY Price Forecast: Technical outlook

The USD/JPY continues to trade “relatively sideways,” with sellers stepping in ahead of Friday's release of crucial US inflation data. Nevertheless, from a technical point of view, the pair will re-test August’s 5 daily low of 141.69 if traders clear some hurdles on the way south.

As of writing, momentum favors sellers, as portrayed by the Relative Strength Index (RSI), which remains bearish. With this said, USD/JPY's first support level would be the August 26 swing low of 143.44. Once surpassed, the next stop would be the psychological 143.00 figure, followed by the 142.00 figure, before challenging the August, as mentioned above, 5-cycle low.

Conversely, if USD/JPY clears the 144.00 figure, the pair could aim upward and challenge higher prices. The next resistance would be the Tenkan-Sen at 146.42, followed by the 147.00 mark.

USD/JPY Price Action – Daily Chart