Economic Calendar
Continuing previous weeks trend, market activity may be considered low, however deviations from fundamental data forecasts may bring increased volatility during this trading week.
USD/JPY hourly chart analysis
USD/JPY is in a sharp short-term downtrend after being rejected from the 150.00 resistance, and is now testing a critical long-term support confluence while the RSI indicates heavily oversold conditions. The hourly chart shows that the prior uptrend has reversed into a corrective phase, confirmed by the price breaking decisively below both the 50 and 100-period Simple Moving Averages. The most critical event is the current test of the powerful support confluence formed by the 200-period SMA (around 148.20) and the horizontal level at 148.39. While the bearish momentum is strong, the Relative Strength Index (RSI) is deep in oversold territory, suggesting the sell-off might be overextended. The market is therefore at a key decision point. A bearish continuation would be signaled by a decisive break below the 148.20 support confluence, which would likely confirm a deeper correction towards the next major support at 147.10.Hourly Chart
USD/JPY daily candle chart analysis
USD/JPY has experienced a major bearish breakdown on the daily chart. A powerful sell-off has shattered the long-term consolidation range, signaling a significant shift in market structure and the potential start of a new, long-term downtrend. After being locked in a sideways range for many months, today's trading has produced a massive, high-momentum bearish candle that has broken below key support levels like 146.00 and 143.90. This bearish takeover is confirmed by the price slicing through all three major daily moving averages in a single thrust. These moving averages and broken support levels will now form a formidable resistance ceiling. The path of least resistance is now clearly to the downside, and any minor bounces are likely to be met with further selling.
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Traders sentiment mixed
No clear directional bias in USD/JPY at this time.