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USD/JPY extends losses after dropping below key 200-day average

The yen strengthened sharply over two sessions, with USD/JPY down 0.91% on Sept. 2 and a further 1.35% on Sept. 3, nearly matching losses seen around the July US-Japan FX intervention.

Reported · Written up by our desk · Major Pairs

A sharp turn in the Japanese yen accelerated against the US dollar as USD/JPY fell 0.91% on Wednesday, Sept. 2, 2026, then extended its decline by another 1.35% on Sept. 3, over the past 40 hours, Action Forex said. The move puts the pair close to the daily loss of 1.32% recorded on July 31, when Japan and the US confirmed their first joint FX intervention in about 28 years following a separate Japanese intervention a day earlier.

Action Forex said the speed of the Sept. 3 decline “smells like FX intervention,” though it noted there were no official press releases from Japan or the US confirming any intervention and no media reports citing sources at the time. The publication said it saw no clear catalyst in relevant economic data releases.

From a technical perspective, the report said the bearish reaction followed a retest of pullback resistance near 160.30, a former major ascending trendline support level from the April 22, 2025 low. It also said the current move pushed USD/JPY below its 200-day moving average and erased all gains from the prior month, since the Aug. 3 low of 155.23.

Action Forex added that the steep intraday drop drove the hourly RSI momentum indicator into oversold territory, without a clear bullish divergence. The note suggested USD/JPY could form a minor dead cat bounce toward near-term support at 156.32, with near-term resistance around 157.30, and it flagged 158.04/50 as a short-term pivotal resistance level.

Latest closeUSD/JPY 158.82 ▼0.9%

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