USD/JPY is trading at 156.30 (+0.60%) as of September 04, 2026, during the European session, after a daily range of 155.28 – 156.45. The pair's current level represents a continuation of its downward trajectory, as it remains below both the 20-day and 50-day simple moving averages at 159.07 and 160.64, respectively, indicating a prevailing downtrend. The Relative Strength Index (RSI) stands at 32.1, suggesting the pair is not yet oversold, as it remains in neutral territory.

The Average True Range (ATR) over the last 14 periods is 1.36, indicating moderate daily volatility. The current price action is near the lower end of its recent range, with the pair having touched a low of 155.28. Key technical levels to watch include the pivot at 157.74, with resistance at R1: 160.13 and support at S1: 156.53. The pair is currently testing the support level, having traded just below it at 156.30.

Given the downtrend indicated by the moving averages and the pair's current position relative to key technical levels, a break below S1 at 156.53 could signal further downside. Conversely, a move towards the pivot at 157.74 may indicate a potential reversal. The next catalyst for USD/JPY will be a break below or above these key levels, with a decisive move potentially confirming or invalidating the current downtrend.