The USDJPY pair is displaying movement patterns that suggest a possible continuation of the downward trend. Following a constrained rebound toward the middle bands on the Bollinger Bands indicator, bearish pressure appears to be reasserting itself. This confirmation is bolstered by negative signals from the MACD indicator.
On the 1-hour chart, USDJPY struggled to break through the resistance at the middle bands area, which often serves as a bounce zone in a declining trend. Meanwhile, the MACD histogram remains in the negative territory, with the MACD line distancing itself below the signal line. This suggests that the bearish momentum is still prevalent.
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Consistent with the analysis of the hourly chart, the 15-minute chart also indicates a potential downturn as prices are currently trapped within a bearish channel and the Stochastic indicator is in the overbought condition, adding further downward pressure. If the scenario unfolds as expected, USDJPY has the potential to decline and test the support level at 154.940.
Technical Reference: sell as long as it remains below 156.345
Potential Stop Loss 1: 156.125
Potential Stop Loss 2: 156.345
Potential Take Profit 1: 155.150
Potential Take Profit 2: 154.940
