Breaking Below the Bollinger Bands, MACD Confirms Bearish Trend Sparks Further Decline in USDJPY

The USDJPY currency pair is experiencing heightened selling pressure after breaching the lower boundary of the Bollinger Bands. This movement often indicates an increase in market volatility and the emergence of a prevailing bearish trend.

Further confirmation comes from the MACD indicator, which signals a potential for additional declines. The MACD line has crossed below the signal line, accompanied by an expanding negative histogram. This combination suggests that selling momentum is strong, paving the way for USDJPY to continue its journey downward.

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This analysis is consistent with the one-hour chart. Additionally, the 15-minute chart also supports a downward move as the price currently resides within a bearish channel, while the Stochastic indicator indicates an oversold condition, adding to the downward pressure. If the scenario unfolds as expected, USDJPY has the potential to drop and test the support level of 156.895.

Technical Reference: sell when below 157.830
Potential Stop Loss 1: 157.690
Potential Stop Loss 2: 157.830
Potential Take Profit 1: 157.050
Potential Take Profit 2: 156.895