The downward pattern continues to dominate the performance of USDJPY, even as the price is presently moving in a sideways manner on the 1-hour time frame. The declining shape of the Bollinger Bands (BB) indicates that the overall trend remains bearish, suggesting that the current consolidation phase is likely a precursor to further declines. This technical structure signals that selling pressure has not completely subsided, leaving the possibility of downward movement open.
The negative value of the MACD indicator further reinforces the potential for a decline, indicating that bearish momentum continues to prevail. As long as the price fails to break through the key resistance level within the consolidation area, the likelihood of moving lower remains significant, aiming to test the nearest support level. The combination of the dropping BB shape and the negative signals from the MACD provides a strong technical basis for market participants to remain vigilant about the potential for further declines in USDJPY.
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An established bearish channel on the 15-minute time frame, accompanied by a sharp decline in the CCI indicator from the overbought zone, suggests that USDJPY is preparing to maintain downward pressure to test the support level at 146.720. The consistent price movement within the downward channel reflects seller dominance, while the weakening CCI indicates a reduction in buying strength and an increase in bearish momentum. As long as the price remains below the channel resistance line, the potential for additional declines remains wide open, targeting the support level of 146.720.
Technical Reference: sell under 147.890
Potential Stop Loss 1: 147.695
Potential Stop Loss 2: 147.890
Potential Take Profit 1: 146.935
Potential Take Profit 2: 146.720
