USDJPY continues its day-ago fall from the YTD high and has recently been under pressure near the intraday low.
After resetting the Year-To-Date (YTD) high, pressured at 145.50 early on Friday morning in Europe, USDJPY has been losing ground for two days in a row as market participants look for further hints amid a dismal close to the week.
The trader’s preparations for the top central bankers’ talks at the Jackson Hole Symposium the next week present another obstacle to the Yen pair’s recent downturn, despite the technical confirmation.
Having said that, Japan’s positive readings for the National Consumer Price Index (CPI) for July join the confirmation of a bearish rising wedge chart pattern that has been in place for three weeks, as well as a decline in US Treasury bond yields to entice Yen sellers.
Technical Outlook
Additionally, a move away from overbought area in the RSI (14) line joins the bearish MACD signals to maintain the sellers’ optimism.
But the immediate downside of the Yen pair is challenged by a horizontal region around 145.10-144.90 that consists of several levels marked since late June.
The 200-SMA near 142.00 and the round number of 140.00 will then be the USDJPY buyers’ final lines of defense before steering the quote toward the hypothetical target of the rising wedge confirmation, close to 137.50.
Alternatively, to reclaim control, USDJPY buyers need to challenge the rising wedge formation by reaching the top line of the identified bearish pattern, close to 146.90. The round number 147.00 also serves as an upside filter.
