The USDJPY pair has come under significant pressure after the buyers failed to maintain the upward movement, even briefly breaking above the bearish channel. This movement turned out to be a false breakout, resulting in renewed selling pressure. The inability of buyers to hold onto the bullish momentum indicates that the market remains influenced by sellers, causing prices to revert to the prevailing bearish structure. This scenario suggests that selling sentiment is gaining strength as we head into tonight’s US trading session.
The downward pressure is becoming increasingly apparent through the ZigZag pattern, which is forming a series of lower highs and lower lows, further confirming a consistent downtrend. Additionally, the downward-sloping moving average and the MACD remaining in negative territory add to the validation that the bearish momentum is becoming more dominant. With this alignment of technical signals, USDJPY may continue to weaken toward the next support area if the selling pressure stays strong.
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On the 15-minute time frame, the previously showing bullish potential has officially halted after the price broke below the low of the bearish channel and the low on the Bollinger Bands. This downward breakout serves as a strong signal that buyers have lost strength to maintain the short rally. With sellers gaining dominance again, USDJPY has reversed its trend and is now likely targeting the support level around 155.000 as its next objective.
Technical Reference: Sell while below 155.710
Potential Take Profit 1: 155.140
Potential Take Profit 2: 155.040
Potential Stop Loss 1: 155.595
Potential Stop Loss 2: 155.710
