The USDJPY initially saw a slight rise that managed to breach the upper limit of a bearish channel on the 1-hour time frame, but this movement turned out to be a false breakout. Instead of continuing to gain, the price corrected back, re-entering the downward channel structure. This indicates that the buying pressure observed earlier was insufficient to reverse the main trend. Such false breakouts often serve as early indicators that buyers are losing momentum, thereby allowing sellers to regain control of the market.
Technical signals also support the potential for further declines. The Moving Average (MA) line has started to trend downwards, aligning with the price moving beneath the average line. Furthermore, the MACD indicator is beginning to show negative signals, as the MACD line cuts below the signal line, reinforcing bearish prospects. As long as the price stays below the high of the false breakout and the bearish channel remains intact, USDJPY is likely to continue weakening towards the next technical supports in the short term.
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The USDJPY is still under pressure on the 15-minute time frame, where a bearish trendline has formed, indicating strong seller dominance. The price continues to be held below this trendline, signaling a lack of strength from buyers to initiate a short-term trend reversal. Additionally, the CCI indicator has sharply dropped from the oversold area, hinting that selling pressure is still present and the chances of further declines are increasing. With this combination, USDJPY is poised to continue its downward movement towards the support level of 143.080.
Technical Reference: sell while below 144.295
Potential Stop Loss 1: 144.110
Potential Stop Loss 2: 144.295
Potential Take Profit 1: 143.320
Potential Take Profit 2: 143.080
