Title: USD/JPY Price Analysis: Bears flirt with 144.00 amid limited downside

September 8, 2022 01:01 AM ET

By: AnalysisWatch

The USD/JPY pair remains in retreat around 144.00, despite a recent rebound from the intraday low, ahead of Thursday's European session.

In doing so, the yen pair is holding the previous day's pullback from the highest levels since 1998, while breaking a two-day-old ascending trend line. Bearish MACD signals also favor sellers of the pair.

It should be noted that the RSI presents a bullish case as an upper price low meets the indicator's upper low, suggesting limited downside for the pair.

That said, the 50-HMA level around 143.30 could challenge near-term declines in USD/JPY. Secondly, an upward sloping support line from August 26 near 141.60 seems to be an important support to watch for traders in the pair.

If the price falls below 141.60, the chances of seeing the 140.00 threshold on the chart cannot be ruled out.

Alternatively, a downward sloping resistance line from yesterday near 144.50 limits immediate bullish moves. Then, the recent high near 145.00 will be in focus.

In the event that USD/JPY bulls break through 145.00, the highs marked in June and August 1998 near 146.80 and 147.70, respectively, could appear on their radar.