The USDJPY pair is displaying increasingly clear signs of weakness on the 1-hour time frame. The formation of a bearish trendline indicates that selling pressure is beginning to dominate the market. With the Moving Average (MA) positioned above the price, the bias remains bearish, while the MACD indicator’s descent into negative territory confirms a waning buying momentum. This combination of technical signals suggests that the downward trend may have the potential to persist.
Should the selling pressure continue, the USDJPY may further decline towards the nearest support level. A breakout below this support could pave the way for a more profound weakening, especially if accompanied by increased volume in the price drop. This situation necessitates vigilance among market participants, as confirmation from the bearish trendline, the position of MA, and the negative MACD signal provide an advantage for the bearish scenario in the short term.
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The bearish channel formed on the 15-minute time frame, combined with a sharp decline in the CCI indicator from an overbought area, indicates that USDJPY is poised to continue its downward pressure to test the support level at 146.720. A price structure that consistently moves within a declining channel reflects the dominance of sellers, while the weakening CCI signifies diminishing buying power and increasing bearish momentum. As long as the price remains below the channel resistance line, the opportunity for further decline towards support at 146.825 remains wide open.
Technical Reference: sell while below 147.970
Potential Stop Loss 1: 147.760
Potential Stop Loss 2: 147.970
Potential Take Profit 1: 147.000
Potential Take Profit 2: 146.825
