The USD/JPY currency pair is currently experiencing a bearish momentum, hovering near the support level around 140.750. This price movement is accompanied by a downward trend below both the 200- and 50-Day Moving Averages, suggesting a range-bound scenario with a bearish inclination.
In Scenario 1, there is a possibility of the price continuing its upward movement to test the 141.265 level, with potential further advancement towards the 141.428 level. If bullishness persists, the price may reach the 141.750 to 141.849 range, which corresponds to the upper boundary of the support level. The highest point to observe is at the June highs of 141.959.
Alternatively, in Scenario 2, the price might decline to test the 143.598 level. A successful test at this level could lead to further downside movement towards the 140.359 level. Additional support levels to monitor include 140.173 and 139.954. Of particular interest are the key levels at 139.931 to 139.840, which align with the 50% Fibonacci retracement level and the bearish support level at 139.480
At present, the market exhibits a bearish momentum, and caution should be exercised as the Relative Strength Index (RSI) approaches the overbought region.
Crucial levels to closely monitor in this analysis are 141.428, 141.265, 140.359, 140.173, 139.840, 139.480, 139.931, and 138.400.
