The USDJPY pair is experiencing intensified bearish pressure as a descending channel has formed on the 1-hour time frame. The price structure displays a Lower High – Lower Low (LH–LL) pattern, confirming the growing dominance of sellers in this market movement. This pattern indicates a shift in market sentiment, where buyers are losing momentum, and sellers are successfully pushing prices lower step by step. As long as prices remain within this bearish channel, the likelihood of further declines remains substantial.
Examining the indicators, the ZigZag illustrates a neat series of bearish swings, reinforcing the prevailing downward trend. The Moving Average continues its downward trajectory, providing additional insight that selling pressure remains highly influential. Meanwhile, the CCI near overbought territory hints at the potential for a downward correction in the near future. Given this technical combination, there is a chance for USDJPY to continue its decline during the afternoon session, particularly if prices stay below the LH–LL pattern and the declining MA line.
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The USDJPY continues to trade within the bearish channel, leading to a gradual decrease in price. The current price position near the resistance level of the Bollinger Bands emphasizes the potential for downward pressure. This situation is further supported by the CCI situated in the overbought zone, indicating that the strengthening momentum is beginning to wane and the chances of a downward correction are increasing. With these technical factors, USDJPY may continue its weakening trend toward the nearest support level at 155.665.
Technical Reference: Sell if below 156.745
Potential Take Profit 1: 156.570
Potential Take Profit 2: 156.740
Potential Stop Loss 1: 155.835
Potential Stop Loss 2: 155.665
