USD/JPY has experienced a sharp decline since its July 3rd peak of 161.95, falling below key technical levels and establishing a bearish trend. The pair’s recent break below the 158.45 trendline and the July 15th low of 157.15 has further reinforced the negative outlook.
Key Technical Levels and Downside Targets:
The short and intermediate-term trends are now firmly bearish, suggesting a potential continuation of the decline. The next immediate target for USD/JPY is 154.90, corresponding to the 61.8% Fibonacci extension of the recent downtrend. Further downside could see the pair reaching 153.21, followed by a potential support level at 151.84 (October 2021 high).
Potential for a Pullback:
While the overall outlook remains bearish, the Relative Strength Index (RSI) indicator is currently in oversold territory, indicating a possible short-term pullback or consolidation before the decline resumes.
Key Points:
- USD/JPY establishes a bearish trend with a series of lower lows.
- Break below key trendline and support level reinforces negative outlook.
- Downside targets include 154.90, 153.21, and potentially 151.84.
- Oversold RSI suggests a possible short-term pullback.
