The US Dollar faces pressure from declining US Treasury yields.

The recent increase in Japan's GDP for the second quarter may have contributed to the Japanese yen's (JPY) Friday rise versus the US dollar (USD). This strengthens the case for a prospective Bank of Japan (BoJ) interest rate hike in the near future.

As the US Dollar weakens due to declining Treasury yields, the USD/JPY pair moves lower. Moreover, as per the CME FedWatch tool, traders completely factor in a 25 basis point rate cut by the US Federal Reserve intended for September.

Technical Analysis: USD/JPY declines to 148.50

On the daily timeframe, the USD/JPY pair is trading at roughly 148.80 on Friday; it is in a downward trend as it is below the 72-day Exponential Moving Average (EMA).
Regarding support levels, the 72-EMA on the 4-hour timeframe, or 148.450, could provide the USD/JPY pair with instant support. The support level at 147.408 will be the pair's next target if it breaks below it. A decline below this level might confirm the bearish view and drive the price down to the seven-month low of 141.69, which was set on August 5.

To the upside, the USD/JPY pair may target the 72-day EMA at 153.833, then the immediate barrier at 150.875. There's also a chance to test the resistance level at 154.50, which has moved from previous throwback support to present pullback resistance.