USD/JPY Price Forecast: Slips below nine-day EMA, 157.00
USD/JPY extends its losses for the second consecutive day, trading around 156.90 during the European hours on Monday. The currency pair is moving forward within a symmetrical triangle, which indicates a period of market consolidation, where neither buyers nor sellers are in control.
The USD/JPY currency pair recently traded around 156.90 during European hours on Monday, marking a second consecutive day of losses. The pair is currently moving within a symmetrical triangle, suggesting a period of market consolidation where neither buyers nor sellers have the upper hand. The bearish near-term bias for USD/JPY persists as the pair remains below both the nine- and 50-period Exponential Moving Averages (EMAs).
The alignment of short- and medium-term EMAs above price indicates that rallies are currently limited, while the 14-day Relative Strength Index (RSI) near 47 suggests consolidative momentum rather than oversold conditions. The weakening FXS Fed Sentiment Index, now at 147.72, further supports a softer tone for the dollar against the Yen.
The pair may rebound towards the nine-day EMA of 157.12 and the 50-day EMA of 158.03. A break above the symmetrical triangle's upper boundary around 159.10 could trigger a bullish revival, potentially pushing the pair toward a nearly 40-year high of 163.99. Conversely, a sustained break below the triangle might expose the 11-month low of 152.10.
Despite a slightly softer tone in Fed communication following a speech by Hammack, the overall Fed sentiment remains hawkish, signaling limited expectations of near-term easing in the US Dollar policy outlook.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
