The USD/JPY pair experienced a minor decline of 0.30% on Thursday, as the US Dollar weakens ahead of the critical US jobs data release on Friday. Despite the pair reaching a high of 156.44, softer-than-expected US JOLTS and ADP employment reports suggest potential downward pressure on the pair, which currently trades at 155.60.
Technical Outlook
The daily chart indicates a neutral to upward bias for the USD/JPY pair, but buyer momentum appears to be waning. While the Relative Strength Index (RSI) has fluctuated between bullish and bearish territories, recent movements suggest increasing seller strength.
Key support for the pair lies at the 50-day moving average (DMA) at 154.98. A break below this level could trigger further declines, potentially reaching the bottom of the Ichimoku Cloud (Kumo) around 153.40/50.
Conversely, if buyers manage to push prices above the June 4 high of 156.48, the pair could rally towards 157.00. Further upward momentum could target the April 26 high of 158.44, followed by the year-to-date (YTD) high of 160.32.
