The USDJPY pair has experienced a significant development as it broke below the key support level at 137.90. This break suggests that the upside move from 127.21 has reached its completion at the high of 145.06.
Currently, the pair is now facing the support of a rising price channel on the weekly chart. The channel has provided a supportive structure for the pair’s upward movement, but a breakdown below this support could signal a shift in market dynamics. If the channel support is breached, it would likely open the door for further downside potential, with the next target being the previous low at 127.21.
On the upside, the resistance level at 145.06 remains significant. A break above this level would indicate renewed bullish momentum and could potentially lead to a retest of the previous high at 151.94.
In summary, the recent break below the support level in USDJPY suggests that the previous upside move has concluded. The pair is currently testing the support of a rising price channel, and a breakdown below this support could lead to further downside pressure. On the other hand, a break above the resistance level at 145.06 would indicate renewed bullish strength. Traders should remain vigilant and adapt their strategies accordingly to navigate the evolving market conditions.