The USD/JPY exchange rate has dropped to 143.74. Analysts have noted a decrease in bullish momentum and a falling RSI (Relative Strength Index). They predict support levels at 142.30 and 141.80, with resistance between 144.40/50 and 146. They are holding a short position in USD/JPY, which they entered at 148, targeting 141, with a stop loss set at 151. These insights come with risks and should not be seen as advice to buy or sell any assets.

Investment Risks and Disclaimers

Forward-looking statements might contain errors, and investments carry the risk of loss and emotional stress. The opinions shared reflect the author’s views and do not represent official policies. The author is not responsible for any external content linked on this page. At the time of writing, the author had no ties to the mentioned companies and did not receive compensation from them. Neither the author nor the source offers personalized advice or guarantees about the suitability or accuracy of the information. Currently, the dollar-yen pair is significantly lower than in previous weeks, approaching the support levels of 142.30 and 141.80. The rapid decline in bullish momentum, shown by a falling RSI, indicates waning upward strength. As the price hovers around 143, there’s a broad pressure, especially as yields decline and risk sentiment shifts slowly. Resistance levels around 144.40–146.00 have held firm, limiting any recovery efforts. As long as prices remain below this range, any rallies are likely to be met with selling pressure rather than fresh demand. If the price settles firmly under 142.30, attention may shift to the psychological level of 141, aligning with ongoing medium-term goals. The position we established at 148 continues to target 141 unchanged. Despite notable market retracement since entry, the stop loss remains at 151, allowing for short-term fluctuations without undermining the overall strategy. Downward pressure could persist, as speculative trends and fundamental indicators appear to align for now.

Market Volatility and Strategy

This situation requires vigilance. While the momentum seems to support a downward trend, sudden reversals due to policy changes or macroeconomic data are always a risk. The Bank of Japan’s yield curve decisions and U.S. economic reports can add to volatility, especially during policy meetings or inflation announcements. Low RSI readings hint at mild oversold conditions. This doesn’t guarantee a reversal but does indicate the possibility of consolidation or erratic bounce attempts, especially when liquidity is low, like during the Asia-Pacific crossover. As we move through the next sessions, it’s crucial to monitor levels around 142.30. A clear break could confirm our goal near 141 and might open new downward opportunities, potentially reaching year-to-date lows. If a bounce occurs, we can expect initial resistance near 144.50 unless significant fundamental changes arise. From our perspective, it’s a time for careful observation without overreacting. Tightening the stop too soon may lead to losses from brief corrections. However, allowing the price to reach our profit target aligns with the broader trend seen during the early breakdown past 145. Traders should practice patience as the price may grind rather than fall sharply. Position sizing remains essential. We see signs of range compression easing, which could indicate that future directional moves may not be as clear-cut as before. While the structure still supports a downward trend, preparing for responsive price action is crucial. This market reflects a mix of technical exhaustion and macro adjustments, which are closely linked but evident in how prices interact with longer-term ranges and fading momentum at resistance. Create your live VT Markets account and start trading now.

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