The USD/JPY begins the week on the back foot with the major sliding 0.33%, weighed by falling US Treasury bond yields and a soft US Dollar (USD). The lack of a catalyst on Monday keeps traders focused on the main event of the week, which is the inflation report in the US. At the time of writing, the pair is exchanging hands at 144.11. From a technical standpoint, the daily chart suggests the pair is bearishly biased, even though it briefly tested a September 11 swing low of 145.89, though buyers were quickly rejected at that level, achieving a daily close at around 144.59 last Friday.
The USD/JPY had remained downward pressured, below the Kijun-Sen and the Ichimoku Cloud (Kumo), suggesting that the downtrend remains in place. That, along with the Chikou Span remaining in bearish territory, would keep sellers hopeful of lowering prices. The major’s first support is seen at 144.00, followed by the Tenkan-Sen level at 143.11, ahead of the 143.00 mark. Once cleared, up next would be the 142.00 mark, followed by the December 28 swing low of 140.25. On the other hand, if buyers lift the USD/JPY above 145.00, that will pave the way for further upside.