The USDJPY pair continues to exhibit increasing bearish pressure following the establishment of a downward channel on the 1-hour time frame. The price structure showcasing a Lower High – Lower Low (LH–LL) pattern confirms the strengthening dominance of sellers in the market. This pattern reflects a shift in market sentiment, where buyers are gradually losing momentum while sellers consistently push prices lower. As long as the price remains within this bearish channel, the potential for further declines is significant during tonight’s US session.
From a technical perspective, the ZigZag indicator illustrates a clean series of swing lows, reinforcing the downward trend currently in motion. The downward trajectory of the Moving Average serves as an additional confirmation that selling pressure remains prevalent. Furthermore, the Commodity Channel Index (CCI) nearing overbought territory indicates the possibility of a downward correction in the near term. With this combination of signals, USDJPY is likely to weaken further during the US session tonight, especially if prices stay below the LH–LL structure and the declining MA line.
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The USDJPY also remains within a bearsih channel on shorter time frames, and the current price position within the resistance of the Bollinger Bands highlights the potential for further downward pressure. The CCI still situated in overbought territory suggests that the upward momentum is losing steam and that the market could face renewed selling pressure. Given this technical support, USDJPY may continue its weakening trend to test the nearest support level at 155.835.
Technical Reference: Sell while below 156.745
Potential Take Profit 1: 156.570
Potential Take Profit 2: 156.745
Potential Stop Loss 1: 156.040
Potential Stop Loss 2: 155.835
