Does USDJPY have the potential to extend its decline?

[FXOcrypto]

Last week the price of USDJPY tended to draw a downtrend pattern since September 2 sequentially the price drew bearish candlesticks with lower lows.

At the weekend, before the release of NFP data, the USDJPY rose to 143,884, but the lower-than-expected NFP data caused the USDJPY price to continue its decline at a low of 141,723 before rebounding to 142,296. NFP data showed 142k lower than the expected 164k though higher than the previous revision of 89k. On the other hand, the US Unemployment Rate met expectations at 4.2% from the previous revision of 4.3%.

UUSDJPY is a pair often linked with carry trade strategies because Japan's low interest rates allow investors to borrow money at low interest rates to invest in currencies with high interest rates.

The forecast that the FED will cut interest rates is still the focus of traders, according to the CME group's FedWatch tool, the forecast for the Fed to cut interest rates by 25 bps increased by 71%, while the forecast for a 50 bps cut fell by 29%. The Fed is expected to cut interest rates on September 18.

Today, some news that may be of concern is Japanese GDP data which is expected to be 0.8%.
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