The USD/JPY currency pair is ending the trading week with gains near the 160.07 area. Moving averages indicate a bullish trend. Prices are testing the area between the signal lines, indicating pressure from US dollar buyers and potential continued price growth from current levels. Currently, we expect an attempt to continue the price rise and a test of the resistance level near the 161.45 area. This should be followed by a downward rebound and a continued decline below the 149.85 level.
USDJPY Weekly Forecast August 31 – September 4, 2026
An additional signal favoring a decline in the USD/JPY pair this trading week will be a rebound from the resistance line on the relative strength indicator (RSI). A second signal will be a rebound from the upper boundary of the Head and Shoulders reversal pattern. The USD/JPY price upside scenario for the current trading week (August 31 – September 4, 2026) would be cancelled by a decline and a breakout of the 164.55 area. This scenario would indicate a breakout of the resistance area and a continued rise in the Forex market above 168.45. A decline in the USD/JPY pair would be confirmed by a breakout of the support area and a price close below 156.05, which would indicate a breakout of the lower boundary of the Head and Shoulders reversal pattern and the beginning of the pattern’s implementation with targets below.
USDJPY Weekly Forecast August 31 – September 4, 2026 suggests an attempt to develop a bullish correction and a test of the resistance level near 161.45. From there, we should expect a continued decline below 149.85. An additional signal in favor of a decline would be a test of the trendline on the relative strength indicator. The downside scenario would be cancelled by a strong rise and a breakout of 164.55. This indicates a continued rise in the pair, with a potential target above the 168.45 area.
