FPG USDJPY Market Report September 4, 2026

On the H1 timeframe, USDJPY’s bearish trend has continued, pushing the pair to its lowest level in several weeks. As shown on the chart, the decline developed from around 160.40 and accelerated lower, with price falling to approximately 155.30, representing a total drop of around 3.18%. USDJPY is currently trading around 155.78 after rebounding from the recent low, with price showing signs of short-term consolidation near the 155.30 support area. Volatility has moderated following the earlier sharp decline, while the broader short-term structure remains bearish.

From a technical perspective, USDJPY continues to maintain a bearish bias despite the recent rebound from support. The Bollinger Bands are beginning to narrow following the earlier expansion, suggesting that volatility is gradually easing. The latest Parabolic SAR dot positioned above the candle, indicating that bearish pressure is still present. Bulls Power stands at approximately -0.088, remaining in negative territory, although the latest histogram bars have become less negative, suggesting that selling pressure is gradually weakening. Meanwhile, the Stochastic oscillator stands around 60.10 and 74.10. After rebounding from oversold conditions, the indicator has recently turned lower from the upper range, suggesting that short-term bullish momentum is losing strength.

Recent developments have continued to weigh on USDJPY, with stronger expectations for a Bank of Japan rate hike supporting the yen, while Federal Reserve officials have maintained a cautious stance on US interest rates. Softer US private payroll data has also raised concerns ahead of the NFP release, limiting dollar strength. These factors have contributed to the pair’s sharp decline from the 160.40 area. Although USDJPY has recently rebounded from 155.30, the recovery remains limited and is better characterized as short-term consolidation within the broader bearish trend, amid continued uncertainty surrounding US-Japan monetary policy.

Technical Market Overview
1. Current Position: USDJPY is currently trading around 155.78 after rebounding from the 155.30 low. The pair is showing signs of short-term consolidation following the sharp decline from 160.40, while the broader bearish structure remains intact.
2. Resistance Zone: The nearest resistance is located around 156.18, which has recently capped the rebound from the 155.30 low. A stronger resistance area is seen around 159.00, where previous price action established a significant barrier during the decline.
3. Support Zone: Immediate support is identified around 155.30, representing the recent swing low and the lowest level reached during the current bearish move. A sustained break below this area could reinforce the prevailing downward structure and expose the pair to further losses.
4. Indicator Observation: Bollinger Bands are beginning to narrow after widening during the sell-off, indicating that volatility is gradually easing. The latest Parabolic SAR dot above the candle, maintaining a bearish signal. Bulls Power stands at approximately -0.088, remaining negative despite improving from deeper negative readings, while the Stochastic oscillator is around 60.10 and 74.10, indicating that the recent rebound has lost momentum after recovering from oversold conditions.
5. Technical Summary: The overall market structure remains bearish, with USDJPY trading below the 156.18 resistance area and close to the 155.30 support level. The recent rebound indicates some short-term recovery, but weakening momentum and the Parabolic SAR position suggest that the broader bearish structure remains dominant. A sustained break below 155.30 could further strengthen the bearish outlook, while a move above 156.18 would be needed to signal stronger short-term recovery.

Market Performance:
Forex               Last Price      % Change
EUR/USD        1.1626             +0.01%
GBP/USD        1.3525             +0.01%

Key Economic Calendar:
US: Fed Hammack Speech
JP: Household Spending MoM & YoY
DE: Factory Orders MoM
UK: S&P Global Construction PMI
UK: BoE Gov Bailey Speech
EU: Retail Sales MoM
US: Average Hourly Earnings MoM & YoY
CA: Employment Change
US: Non Farm Payrolls
CA: Full Time & Part Time Employment Change
US: Participation Rate
CA: Participation Rate
US: Unemployment Rate
CA: Unemployment Rate
CA: Ivey PMI s.a