USDJPY has experienced a recent decline, breaking through key support levels. This analysis examines the technical situation and explores potential scenarios for the currency pair.
Breakdown Confirmed: Support Levels Breached
- 149.52 and 149.20 Broken: USDJPY decisively fell below both the 149.52 and 149.20 support levels, indicating a downturn in the market.
- 148.70 Support Tested: The pair is currently testing the 148.70 support level.
Potential Downside Path:
- 147.70 Target: A breakdown below 148.70 could trigger further downside movement, potentially reaching the 147.70 support level. This scenario would suggest a continuation of the downtrend.
Resistance to Watch: Potential for Rebound
- 149.70 Initial Resistance: While the outlook appears bearish, it’s important to acknowledge potential upside potential. The initial resistance level to watch is at 149.70. A breakout above this level could indicate a short-term correction and potentially lead to a retest of the 150.88 resistance level.
Overall Sentiment:
The technical outlook for USDJPY has turned bearish following the breaches of the 149.52 and 149.20 support levels. The pair is currently testing the 148.70 support, with a potential breakdown aiming for 147.70. However, a break above 149.70 could signal a temporary pause in the downtrend. Monitoring the price action around these key levels will be crucial in determining the direction of the next move.