USD/JPY Price Forecast: Recovers 146.00 but remains bearish

• USD/JPY gains momentum but struggles to clear Wednesday's high of 146.90, keeping the pair range-bound.
• A break above 146.92 could lead to resistance at 147.00 and the August 15 high of 149.39, with 150.00 as a key target.
• If sellers push the pair below 144.45, the downtrend may continue, with support at 141.69.

The USD/JPY strengthened late during Thursday's North American session, following choppy price action on Wednesday that saw the pair hover around 145.20. The push higher in US Treasury bond yields boosted the pair, which gains over 0.66% or 95 pips and trades at 146.24.

USD/JPY Price Forecast: Technical outlook

After printing a long-legged doji, the USD/JPY aims higher yet is shy of clearing Wednesday's high of 146.90, keeping the pair range bound. Momentum favors sellers, with the Relative Strength Index (RSI) standing bearish. However, buyers are gathering momentum as the RSI aims up.

 For a bullish continuation, the USD/JPY needs to crack the Tenkan-Sen at 146.92. Once cleared, the next resistance would be 147.00, followed by the latest cycle high reached on August 15 at 149.39. If those levels are broken, buyers could re-test the 150.00 figure.

On the other hand, the ongoing downtrend could resume once sellers drag prices below the August 21 low of 144.45. In that outcome, the USD/JPY could dive toward the August 5 swing low of 141.69.

USD/JPY Price Action - Daily Chart