The USD/JPY is on track for a positive weekly close, but still faces key resistances indicating a downtrend. Resistance challenges include the Kijun-Sen at 144.40 and the Ichimoku Cloud, with the 50-DMA approaching a bearish cross with the 100 and 200-DMAs. While buyer momentum is increasing with the RSI rising, it remains below the critical 60 mark needed to reverse the downtrend. Potential upside targets include 145.00 and the September 3 high at 147.21, while a drop below 143.00 could test support at 142.04 (Tenkan-Sen).
The USD/JPY has seen gains for two consecutive days, but has yet to breach the 144.00 figure, despite reaching a weekly high of 144.49. Currently trading at 143.96, up by 0.93%, the pair is set to end the week on a positive note. However, it still maintains a downtrend, with the USD/JPY failing to reclaim the Kijun-Sen at 144.46 and remaining below the Ichimoku Cloud (Kumo).
The trend may accelerate as the 50-day moving average (DMA) nears a cross below the 100 and 200-DMAs, with the former closing the gap with the latter. Although buyer momentum is building as the RSI moves upward, it has not yet reached the crucial 60 level that would signal a reversal of the USD/JPY downtrend. In the short term, the pair could continue to extend its gains, with the Kijun-Sen serving as the first resistance at 144.40, followed by targets at 145.00 and the September 3 high at 147.21.
On the other hand, if the USD/JPY declines below 143.00, the Tenkan-Sen at 142.04 could provide support. The Japanese Yen has shown strength against other major currencies, with the table below displaying the percentage change of the JPY against listed currencies. The JPY was strongest against the Swiss Franc. The heat map illustrates the percentage changes of major currencies against each other. The base currency is selected from the left column, while the quote currency is chosen from the top row.
In conclusion, while the USD/JPY is on track for a positive weekly close, it continues to face key resistances that maintain the downtrend. Buyer momentum is increasing, but has not yet reached the critical level needed to reverse the trend. Potential upside targets and support levels are identified, with the pair expected to continue its gains in the short term. The Japanese Yen has shown strength against other major currencies, with the JPY being strongest against the Swiss Franc. The heat map provides a visual representation of the percentage changes of major currencies against each other.
