“US Aug payrolls +142k,

Short-term Forecast: Bearish

USD/JPY trends will hinge on the upcoming inflation figures from the US and comments from the BoJ. A combination of hawkish comments from the BoJ and weaker US inflation could narrow the interest rate differential between the US and Japan, signaling a drop below 141.5.

Investors should remain alert with inflation data and central bank chatter likely to influence the BoJ and the Fed’s rate paths. Monitor real-time data, central bank insights, and expert commentary to adjust your trading strategies accordingly. Stay updated with our latest news and analysis to manage USD/JPY volatility.

USD/JPY Price Action

Daily Chart

The USD/JPY remained well below the 50-day and 200-day EMAs, confirming bearish price trends.

A USD/JPY breakout from 142.500 could signal a move toward the 143.495 resistance level. Furthermore, a break above the 143.495 resistance level may bring the 145.891 resistance level into play.

Central bank commentary and the US CPI Report require consideration.

Conversely, a break below 142 could indicate a drop toward the 141.032 support level.

The 14-day RSI at 34.54 indicates a USD/JPY drop below 142 before entering oversold territory.