USD/JPY Price Forecast: Breaks below 142.00 on weak US Dollar

• USD/JPY remains downward biased, with a daily close below 142.00 signaling potential for further losses toward 140.71 and 140.25.
• Bears maintain control as RSI stays flat, indicating consolidation before the next move.
• On an upward correction, resistance lies at 142.00, followed by 143.04 and key levels at 143.96 (Tenkan-Sen) and 144.50 (Senkou Span A).

The USD/JPY fell from around 143.00 peak and lost over 0.28% due to mixed economic data from the United States (US), bolstering the odds for the Federal Reserve's first rate cut next week. At the time of writing, the pair trades at 141.96.

USD/JPY Price Forecast: Technical outlook

The USD/JPY remains downward biased, but after Wednesday's long tail, it could face an upward correction and test key resistance levels.

Despite that, bears remain in charge as the Relative Strength Index (RSI) shows, though a flat slope, hints that consolidation lies ahead.

 If USD/JPY achieves a daily close below 142.00, traders could drag prices toward the September 11 trough at 140.71. If cleared, the next stop would be December 28, 2023, with a cycle low of 140.25, ahead of 140.00.

On further strength, the first resistance would be the 142.00 mark. If hurdled, the next stop would be the September 12 high at 143.04, followed by the Tenkan-Sen at 143.96 and Senkou Span A at 144.50.

USD/JPY Price Action - Daily Chart