Higher volatility closed previous weeks trading session in USD/JPY, closing below 155.550.
Volatility may increase in the FX due to upcoming snap election in Japan, which currently increases uncertainty.
USD/JPY hourly chart analysis
USD/JPY is in strong bearish momentum on the hourly chart, dropping from 158.00 to 153.67 with lower highs and lows. The price is well below the 50-, 100-, and 200-hour SMAs, and the RSI at 17 indicates extreme oversold conditions. Immediate resistance is 154.59, support is at 151.65, and if selling continues, the pair could test 147.40.Hourly Chart
USD/JPY daily candle chart analysis
USD/JPY has sharply dropped on the daily chart, breaking below the 50-day SMA and testing key support around 153.665. The 100-day SMA now serves as the next support level, while the 200-day SMA near 149.65 suggests the long-term uptrend remains intact. If the pair holds above 153.665 and rebounds, a short-term recovery toward 155.50–156.00 is possible, though medium-term momentum remains bearish.
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Traders sentiment
Most traders are short on USD/JPY, with 66.53% holding bearish positions, signaling a strong market expectation of further declines.