USD/JPY hourly chart analysis
4-hour USD/JPY chart captures a violent "elevator down" move where a single, massive red candle has effectively erased weeks of bullish progress. After failing to establish a firm base above the 160.000 psychological level, the pair crashed decisively through its 50-period Simple Moving Average and is currently hovering near 156.675. While the price found temporary relief at the 156.000 support line, the technical structure is heavily compromised, and the previous support level at 157.700 is now likely to act as a formidable resistance barrier. Given the extreme volatility and the clear break below the blue SMA line.Hourly Chart
USD/JPY daily candle chart analysis
The technical analysis reveals a significant bearish reversal for USD/JPY as the price sharply rejected the psychological 160.00 resistance level with a large red candle. This downward move is supported by the MACD indicator, which shows a bearish crossover and a transition to negative red histogram bars, signaling a loss of bullish momentum. Currently, the pair is testing immediate support near the 156.00 horizontal line, with a further downside target visible at the 153.50 level if the current selling pressure persists. As occurrence of this event have been evaluated in one of our previous USD/JPY outlooks. Probability of secondary target has increased however, any additional bullishness may see significant reversals.
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