USDJPY (together with the other JPY pairs) has rebounded somewhat from the massive sell-off that occurred in July.

However, the rebound could continue further, possibly to the 0.382 retracement and resistance around 149.40. That level could be as far as the rebound goes, though.

RSI is showing negative sentiment, and there has been no divergence at the sell-off, indicating USDJPY could resume its downtrend and make a new low below 141.65.

If USDJPY takes out today’s low at around 146.39, there is a great likelihood that USDJPY will resume its downtrend.

A daily close above 149.45 is likely to extend the rebound to around the 200 daily moving average and resistance at around 151.85.