The USDJPY currency pair is exhibiting a notable shift towards seller dominance, particularly on the 1-hour timeframe, as evidenced by the price movement consistently residing within a bearish channel. This downward pressure is further reinforced by the market structure’s failure to create higher highs, thereby maintaining a prevailing downtrend. Additionally, the downward-pointing Moving Average signals that the bearish momentum remains robust, indicating that buyers have yet to reclaim control.
The signs of weakness are also corroborated by the bearish pattern seen in the zigzag indicator and the MACD, which is positioned in negative territory, confirming the likelihood of ongoing selling pressure. Given this combination of technical signals, there is a risk that USDJPY may continue to decline toward the nearest support level should the sellers remain in control. In this scenario, any potential rebound will only occur if prices can break free from the bearish channel and demonstrate a stronger reversal structure.
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The USDJPY adds to the bearish pressure following a successful break below the Bollinger Bands support, continuing its movement beneath that area, which indicates a strengthening seller dominance on the 15-minute timeframe. This situation is exacerbated by the CCI being in the overbought zone, signaling that the previous rally is losing momentum and opening up space for an ongoing decline. With this combination of technical pressures, USDJPY is poised to test the key support level at 155.145.
Technical References: Sell below 155.955
Potential Take Profit 1: 155.835
Potential Take Profit 2: 155.955
Potential Stop Loss 1: 155.290
Potential Stop Loss 2: 155.145
