The USD/JPY pair has retreated after reaching a two-week high of 144.68, dropping 0.28%. This decline is attributed to worse-than-expected US data and falling US Treasury yields. The Greenback has been under pressure as investors anticipate a 50-basis point rate cut by the Fed. Currently, the pair is trading at 143.14.
From a technical perspective, the USD/JPY remains in a downtrend despite testing the 144.00 level for three consecutive trading sessions. The Relative Strength Index (RSI) indicates that momentum is in favor of sellers, with the pair below the Ichimoku Cloud and the 200-day moving average. Key support levels to watch include the September 20 low of 141.73 and the September 16 low of 139.58.
If the USD/JPY manages to surpass the Kijun-Sen at 143.44, it could target the 144.00 level, followed by the recent high of 144.68. However, these bullish scenarios are dependent on the pair overcoming key resistance levels.
In terms of Japanese Yen performance today, the currency has been strong against the US Dollar. The percentage changes of JPY against other major currencies are shown in the table, with JPY showing gains against most currencies. The heat map provides a visual representation of these percentage changes for a quick reference.
Overall, the USD/JPY pair faces downward pressure amid unfavorable US economic data and lower Treasury yields. However, technical indicators suggest potential support levels for the pair, with key resistances to watch for any bullish reversals. Traders will continue to monitor developments in the market to gauge the direction of the USD/JPY pair in the coming sessions.
