In the US session tonight, USDJPY is displaying signs of a trend reversal after successfully breaking below the key lower boundary of a bullish channel that had previously supported its upward movement. This breach signals the potential end of the strengthening phase and opens up the possibility for the beginning of a new bearish trend. This shift is evident through the formation of a lower high (LH) and lower low (LL) structure on the 1-hour timeframe—classic patterns of a downtrend. The alteration in structure confirms that selling pressure is beginning to take control of the market, while buying interest is likely to be more restricted in the short term.
From a technical perspective, this new trend direction is reinforced by the Moving Average (MA) line starting to trend downwards, visually indicating that market control has shifted to sellers. Additionally, the MACD indicator is in the negative zone, suggesting that bearish momentum is growing and selling pressure could continue. As long as the price cannot break back above the nearest resistance level, USDJPY remains at risk of further decline towards the next support area.
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On the 15-minute timeframe, the movement of USDJPY continues to exhibit a consistent downward trend, marked by zigzag patterns creating lower highs and lower lows. This structure reflects that selling pressure is still dominant in price movement in the short term. Furthermore, the Commodity Channel Index (CCI) is in the overbought region, signaling that the potential for a downward reversal is reopening. With this technical combination, USDJPY has the opportunity to continue its decline towards the support level of 143.740.
Technical Reference: sell while below 145.220
Potential Stop Loss 1: 145.000
Potential Stop Loss 2: 145.220
Potential Take Profit 1: 143.970
Potential Take Profit 2: 143.740
