• USD/JPY closes unchanged at 143.58, forming a ‘doji’ candlestick, signaling indecision amid geopolitical risks.
• RSI suggests potential consolidation, with the pair expected to trade between 142.98 and 144.53 in the short term.
• A break above 144.53 could target 145.00 and the 50-DMA at 145.47, while a drop below 142.98 exposes the 141.65 support level.

On Tuesday, the USD/JPY formed a ‘doji’ and finished the day unchanged at around 143.58. During the session, the major seesawed at around a 150-pip range before ending the trading day with minimal gains of 0.02%.

USD/JPY Price Forecast: Technical outlook

The downtrend remains intact. Even though the pair was headed to sustain losses, the USD/JPY rallied on risk aversion amidst Iran's attack on Israel. That sponsored a leg-up toward the current exchange rate.

The Relative Strength Index (RSI) favors further downside, though its slope is flat. This hints at consolidation ahead. That said, the USD/JPY might trade within the 142.98-144.53 area in the near term.

If buyers clear the top of the range, that will expose the 145.00, followed by the 50-day moving average (DMA) at 145.47. A breach of the latter will expose the bottom of the Kumo at around 147.80-148.00.

Conversely, if USD/JPY tumbles below 142.98, the September 30 cycle low at 141.65 will be exposed. On further weakness, the next stop would be the September 16 pivot low at 139.58.