The USD/JPY currency pair has broken below a key support level and is currently falling lower, indicating a resumption of its mid-term downtrend after a pause in August. The next target for the pair is the August 5 lows at 141.69. This bearish sign was triggered by the pair breaking below the key 143.45 swing lows on August 26, flipping the trend in favor of sellers.
In the short-term, USD/JPY is likely to continue its downtrend, with the next support level at 140.44 once the pair reaches the 141.69 lows. While the Relative Strength Index (RSI) momentum indicator is currently oversold, suggesting a potential for a counter-trend correction higher, traders are advised not to add to their short positions until the RSI exits oversold territory.
With the trend favoring more downside for USD/JPY, traders should keep an eye on the key support levels of 141.69 and 140.44. A break below these levels would indicate further weakness in the pair. The 4-hour chart for USD/JPY reflects the current downward trend, with the pair likely to hit the 141.69 lows in the near future.
In conclusion, the USD/JPY currency pair is currently in a short-term downtrend, with the next target set at the 141.69 lows. While the RSI indicator shows oversold conditions, traders are advised to watch for any potential counter-trend corrections. As the trend is in favor of more downside for USD/JPY, it is important to monitor key support levels for any further weakness in the pair.
