USDPY is beginning to exhibit a clear sign of weakness after the price successfully broke below the bullish channel on the 1-hour time frame. This breakout serves as a strong indication that the previous upward trend has lost its momentum, allowing selling pressure to take control. The price movement crossing the lower boundary of the channel signifies a shift in market structure from bullish to neutral to bearish. This is further corroborated by a sharply declining Moving Average (MA), reflecting a transition of dominance from buyers to sellers.
Furthermore, the MACD indicator is now in negative territory, with the histogram widening downwards, indicating a rise in bearish momentum in the short term. The combination of the breakout from the channel, the downward direction of the MA, and the MACD condition supporting selling pressure opens up possibilities for USDPY to continue its decline towards the next support level. Should this pressure persist, it is quite possible that this pair will enter a deeper downtrend phase. Traders are advised to keep an eye out for sell entry opportunities as long as the price remains below the breached channel area.
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On the 15-minute time frame, USDJPY’s movement shows a tendency to weaken as the Moving Average (MA) begins to flatten yet continues to trend downwards, indicating a loss of upward momentum in the short term. Selling pressure is also confirmed by the CCI indicator, which is in the overbought area, suggesting potential corrections or reversals. With technical signals pointing lower, USDJPY is poised to continue its decline and test the nearest support level at 147.040.
Technical Reference: sell while below 148.880
Potential Stop Loss 1: 148.520
Potential Stop Loss 2: 148.880
Potential Take Profit 1: 147.405
Potential Take Profit 2: 147.040
