The USDJPY currency pair is showing signs of weakness after failing to sustain gains despite briefly breaking above a bullish channel. This movement indicates a false breakout, triggering a resurgence of selling pressure. The inability of buyers to uphold the bullish momentum has caused prices to re-enter the seller’s zone, which in technical terms appears as a bearish channel. This shift serves as a signal that seller dominance is strengthening again following an unsustainable uptrend.
The bearish pressure is further validated by a zigzag structure, which is reshaping a downtrend pattern, indicating that price action is consistently moving down. Additionally, the declining moving average and a MACD reading in negative territory provide further confirmation that bearish momentum is intensifying. This combination of technical signals increases the likelihood of continued declines, suggesting that USDJPY may aim towards its nearest support levels.
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Earlier bullish opportunities indicated by Bollinger Bands and the bearish channel have had to cease after prices broke below the lower channel level as well as the lower Bollinger Band on the 15-minute timeframe. This downward break signals a strong indication that buyers are losing momentum, and seller dominance is reclaiming the market. With the current downward technical structure, the USDJPY has turned weaker, potentially targeting a low level of 155.230.
Technical Reference: Sell when below 155.915
Potential Take Profit 1: 155.795
Potential Take Profit 2: 155.915
Potential Stop Loss 1: 155.335
Potential Stop Loss 2: 155.230
