The USDJPY pair is showing signs of weakness on the one-hour time frame after failing to breach the upper limit of the Bollinger Bands. This rejection at the resistance zone suggests that buying pressure is starting to fade, thereby creating an opportunity for a downward correction.
Moreover, the Stochastic indicator is currently in an oversold condition, indicating that the price has hit a saturation point in buying and may experience a downward reversal. If selling pressure continues to mount, USDJPY could decline towards the midline of the Bollinger Bands, serving as the first dynamic support, before testing lower support levels.
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Additionally, the Stochastic indicator remains in an oversold condition, which implies that buying momentum is weakening and a downward reversal is possible. Should selling pressure escalate, USDJPY might head towards the Bollinger Bands’ midline as the initial dynamic support before addressing lower support regions.
There’s a potential for USDJPY to experience a decline after the price crosses below the Moving Average (MA) on the 15-minute time frame, signaling a weakening of bullish momentum. Additionally, the Commodity Channel Index (CCI) is approaching overbought territory, suggesting that the price is at risk of undergoing a downward correction. If selling pressure persists and the CCI turns downward from the overbought levels, USDJPY could fall to a support level of 148.980.
Technical Reference: sell below 150.470
Potential Stop Loss 1: 150.200
Potential Stop Loss 2: 150.470
Potential Take Profit 1: 149.220
Potential Take Profit 2: 148.980
