Selling USDJPY with 146.19 in view amid weakening dollar

Today, the USDJPY pair opened the trading session at 147.372. A statement from US President Donald Trump regarding his attempt to displace Federal Reserve Board member Lisa Cook was the primary factor affecting recent dynamics. This has sparked worries among investors about the central bank's independence, causing big changes in the currency market. A prolonged legal dispute between Cook and the White House administration could create ongoing uncertainty surrounding future monetary policy in America.

In this context, traders are focusing on upcoming US economic statistics, particularly the core personal consumption expenditures (PCE) index and labor market data. These indicators may exert significant pressure on the Federal Reserve's decision over borrowing costs in September. Investors believe the rate will probably be lowered by 25 basis points at the regulator's next meeting.

Meanwhile, the Japanese government continues to exercise caution regarding its monetary policy. Although the central bank has signaled a potential rate hike before year-end, it is currently maintaining a softer stance. The cancellation of a planned trip by the nation's top trade negotiator, Ryosei Akazawa, to the United States makes commercial relations between the two countries even more uncertain. This also puts pressure on the yen.

The latest technical analysis mirrors the current uncertainty in the USDJPY market. On the daily chart, quotes are positioned at 147.088, previously showing a slowdown during morning trading. The RSI (14) indicator stands at 52, denoting a market condition that is neither overbought nor oversold. Its location close to the 50 centerline verifies the present consolidation phase and the lack of a clear directional bias. On top of that, the On-Balance Volume (OBV) is dropping, therefore indicating an uptick in selling activity and a fall in buying enthusiasm. This is in line with the lower price and shows that there's a chance it could go below the nearest support level, i.e., 147.00.

Here's a trading strategy to consider:

Sell at the current price. Take profit: $146.190. Stop loss: $148.060.

This forecast is valid from August 28 to September 4, 2025.