USD/JPY are falling 8/12/2023

The USD/JPY pair experienced a significant downturn in the previous session, marking substantial losses. The reversal of the anticipated intraday upward trend, as highlighted in the prior report, steered the pair back into an official bearish trajectory. The breach of 146.70, contrary to expectations, led the pair to dip to 146.20, surpassing projections and reaching its lowest point at 141.60.

Technically, the influence of the simple moving averages from above persists, reinforcing the daily downward trend of prices. With daily trading remaining below the 144.50 resistance level, the likelihood of a sustained downward trajectory in today’s session gains support.

Consequently, we anticipate the pair to extend its decline towards 142.70. It’s noteworthy that a break below this level could intensify and expedite the strength of the downward trend, paving the way for a direct visit to 141.10 and 140.70, provided that trading remains stable below 144.50.

A crucial reminder is in place: Price consolidation above 144.50 would signal a potential recovery for the pair towards 146.80.

Several warnings warrant attention: The risk level remains high, emphasizing the need for cautious trading. Additionally, today’s anticipation of high-impact economic data from the American economy—specifically non-NFP data, average wages, and unemployment rates—may result in heightened price fluctuation during the news release. Exercise vigilance in response to market dynamics.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 141.10	R1: 146.80
S2: 138.50	R2: 149.90
S3: 135.40	R3: 152.50