Japanese Yen gains ground after inflation data, BoJ Governor Ueda’s speech
Technical Analysis: USD/JPY falls toward 145.50 around the downtrend line
USD/JPY trades around 145.60 on Friday. Analysis of the daily chart shows that the pair is positioned above a downtrend line, suggesting a weakening of a bearish bias. However, the 14-day Relative Strength Index (RSI) remains just above 30, indicating that the bearish trend may still be in play.
For support levels, the USD/JPY pair tests the downtrend line at the 145.50 level. A break below this level could reinforce the bearish bias and push the pair to navigate the region around the seven-month low of 141.69, which was recorded on August 5. A further drop could drive the pair toward the throwback support level at 140.25.
On the upside, the USD/JPY pair could encounter immediate resistance around the nine-day Exponential Moving Average (EMA) at the 146.46 level. A breakthrough above the nine-day EMA could support the pair to test the resistance level at 154.50, which has transitioned from previous support to current resistance.
