On the 1-hour time frame, USDJPY is exhibiting early signs of a potential trend reversal after the price has breached below the previously established bullish channel. This break below serves as a significant signal that selling pressure is beginning to rise, marking a deterioration in the earlier bullish trend structure. The Moving Average (MA) has also started to head downward, indicating that price movement is now more influenced by sellers, rather than being driven by buyers.
Moreover, the MACD indicator is beginning to show downward pressure in the negative territory, which reinforces the likelihood of a momentum shift from bullish to bearish. The declining histogram coupled with the signal line crossing below serves as a technical signal that the earlier bullish trend may have reached its peak. Should selling pressure persist without a strong counter from buyers, USDJPY may enter a further decline, especially as it approaches the European session.
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On the 15-minute time frame, a bearish channel is beginning to take shape, indicating that selling pressure is starting to dominate USDJPY’s short-term movements. The price structure continues to make lower highs and lower lows, reflecting a weakening trend, along with the Moving Average (MA) which is also trending downward in line with the declining price action. This scenario creates a viable opportunity for USDJPY to continue its descent, especially if the selling pressure endures as it approaches support during the European session.
Technical Reference: sell while below 148.730
Potential Stop Loss 1: 148.550
Potential Stop Loss 2: 148.730
Potential Take Profit 1: 147.890
Potential Take Profit 2: 147.735
