USD/JPY Price Prediction: Bouncing from close to August 5 lows

USD/JPY is rebounding from key support near the August 5 lows.
It is forming a bullish candlestick although it is not possible to be certain until the current 4-hour period ends.
The trend remains bearish although a correction higher looks likely.

Joaquin Monfort FXStreet

USD/JPY has fallen close to the August 5 lows and bounced. It is forming a large, bullish Hammer Japanese candlestick pattern on the 4-hour chart – if the current period ends with the pattern intact it could signal the start of a substantial pull-back or correction higher.

USD/JPY 4-hour Chart

The Relative Strength Index (RSI) momentum indicator has exited oversold, giving a buy signal and indicating a greater chance of a counter-trend correction evolving. The RSI has also itself formed a double bottom pattern when looking at the previous time it was oversold on September 4. This is further evidence strengthening the case for a bullish reaction.

The short-term trend remains down, however, and it is too early to be sure that the pair is reversing the trend fully. The correction higher could soon run out of steam, leading the pair to recapitulate and start falling in line with the trend. It is a major tenet of technical analysis that “the trend is your friend” and the odds favor a continuation lower.

However, it would require a break below the August 5 lows at 141.69 to confirm a continuation lower. Such a move would probably then fall to support at 140.44 initially, the December 2023 lows.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

GBP/USD back to 1.3250, down modestly for the day

GBP/USD now comes under fresh downside pressure and recedes toward the mid-1.3200s on Tuesday, partially reversing the optimism seen at the beginning of the week. Meanwhile, Cable’s bearish tone follows the resumption of the upside traction in the Greenback, always amid the sharp rally in USD/JPY.

EUR/USD looks inconclusive in the low 1.1400s

EUR/USD alternates gains with losses in the 1.1420 region in the latter part of the NA session on turnaround Tuesday. The pair’s vacillating price action comes amid the lack of clear direction in the US Dollar. Meanwhile, market participants are expected to gear up for the upcoming key releases on the US docket and developments from the ECB Forum in Sintra.

Gold clings to daily gains beyond $4,000

Following multi-month lows near $3,950, Gold now manages to regain some composure and reclaim the area beyond the key $4,000 yardstick per troy ounce on Wednesday. Still, any meaningful recovery appears limited as a broadly firmer US Dollar and rising US Treasury yields weigh on the yellow metal.

Ethereum: Sharplink makes first treasury purchase in 2026 amid ETH's fall from grace

Ethereum treasury firm Sharplink resumed accumulation of the second-largest cryptocurrency by market capitalization last week after months on the sidelines. The Florida-based firm acquired 10,000 ETH last week at an average price of $1,611 per ETH, marking its first purchase since October. The move has pushed its holdings to 886,725 ETH worth roughly $1.4 billion at the time of writing.

Why a hawkish Bank of Japan could trigger the next Bitcoin sell-off

The Japanese Yen hits a 40-year low of 162.00 against the US Dollar, raising concerns about intervention or additional rate hikes by the Bank of Japan. BoJ may sell US Treasuries to buy back Yen, potentially pushing US bond yields higher and making Bitcoin less attractive to investors.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.