Early in the American session, the Japanese yen is trading around 144.47, making a slight technical correction having reached a high of around 144.88 during the European session.
In the next few hours, data from the United States will be available. Hence, the USD/JPY pair is likely to make a technical bounce from the current point towards the daily high.
If this scenario occurs, this move could be seen as an opportunity to sell only if the price consolidates below 144.80.
Both critical resistance and psychological level are located around 145.00. However, if the uptrend prevails and breaks this level, we could expect the yen to reach 5/8 Murray located at 145.31. If the instrument falls below that area, it could be seen as an opportunity to sell.
According to the Eagle indicator and the 4-hour chart, the Japanese Yen has been overbought since August 8 and is signaling a negative divergence.
If USD/JPY trades below the psychological level of 145.00 in the next few hours, it will be seen as an opportunity to sell.
21 SMA located at 143.81. This level and 4/8 Murray around 143.75 have become a very strong bottom. In case the price falls and bounces above this level, we could expect the bullish cycle to resume and the pair could reach 145.31.
On the other hand, in case the Japanese Yen makes a strong technical correction, breaks, and consolidates below 4/8 Murray, we could wait for a downward acceleration and the instrument could reach the 200 EMA located at 141.73. It could even decline to the psychological level of 140.00.
