FX.co ★ Trading Signal for USD/JPY on September 7-8, 2023: sell below 147.60 (overbought - 21 SMA)

Early in the American session, the Japanese yen (USD/JPY) is trading around 147.44 below the 21 SMA, and below the 7/8 Murray. The Yen was rejected by a strong resistance zone located at 147.80. At this level on several occasions, it tried to break it and since then, USD/JPY has been in a consolidation stage.

On September 4, the Eagle indicator reached the extremely oversold zone around 95 points and since then, we have seen a consolidation. A technical correction is going on in the next few hours and the USD/JPY pair could reach the 6/8 Murray zone located at 146.87 and even decline to the 200 EMA at 146.63.

In the case of a break below 147.20, we could expect the bearish pressure to accelerate and the yen could reach 146.60 and 5/8 Murray at 145.31. Finally, it could reach the psychological level of 145.00.

On the other hand, the barrier of 147.80 will be the limit that prevents the yen from a further rise. A sharp break above this area and a consolidation on the daily chart could give support to the pair and it could reach 7/8 Murray at 148.43 and could even reach the psychological level of 150.00.

In the next few hours, we expect the Japanese Yen to fall below 147.60 which could be seen as an opportunity to sell with targets at 147.20 and 146.87. The Eagle indicator is giving a negative signal which supports our bearish strategy.