USD/JPY Price Prediction: Downtrend resumes, bears target August lows
- USD/JPY has broken below a key support level and is falling lower.
- The August 5 lows are the next target at 141.69.
USD/JPY is resuming its mid-term downtrend after a punctuated pause during August.
The pair has broken below the key 143.45 swing lows (August 26 low) – a bearish sign that flips the trend. Sellers now have the key August 5 lows at 141.69 in their sights.
USD/JPY 4-hour Chart
USD/JPY is probably in a short-term downtrend and given the saying “the trend is your friend” the odds favor more downside.
The pair will probably reach the 141.69 lows. A break below that would probably lead to further weakness towards the next support level at 140.44.
The Relative Strength Index (RSI) momentum indicator is oversold, however, so traders are advised not to add to their short positions. If RSI exits oversold it will be a signal a counter-trend correction higher is unfolding.
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.
