Following a sharp increase in the previous trading session, the USDJPY currency pair experienced a significant reversal on Monday (June 23, 2025). The pair plummeted, successfully breaking through the lower boundary of its previously established bullish channel. This breakout serves as an early indication that upward buying pressure is beginning to wane. The situation has been exacerbated by the Moving Average (MA) line starting to curve downwards, reflecting a shift in the short-term trend.
Additional technical signals corroborate the potential for further decline. The Commodity Channel Index (CCI) has dropped from the overbought territory, suggesting that the prior bullish momentum is gradually diminishing. With the combination of the channel breakdown signal and weakening indicators, USDJPY is now in a corrective phase that opens the door for deeper declines. As long as the price remains below the breakout area and selling pressure intensifies, the downtrend is likely to continue in the near term.
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The USDJPY pair displays potential for further weakening after breaking below the upward trend line (trendline) on the 15-minute timeframe, which had previously supported its bullish movement. This breakdown is an early signal of a change in direction, especially with the MACD indicator now positioned in negative territory, reflecting increasingly dominant selling pressure. Given these technical factors, USDJPY is poised for a downward continuation towards lower levels in the short term, targeting 144.455.
Technical Reference: sell while below 145.645
Potential Stop Loss 1: 145.425
Potential Stop Loss 2: 145.645
Potential Take Profit 1: 144.640
Potential Take Profit 2: 144.455
