USD/JPY: Signs of Bearishness Ahead, Will There Be a Big Drop?

5 days agoOn the chart, we can see a clear bearish trend in the USD/JPY pair. The 34 EMA and 89 EMA indicate a bearish bias as the 34 EMA has crossed below the 89 EMA, which signals increasing selling pressure. In the current scenario, the price is moving within a bearish channel, with lower highs and lower lows, which further reinforces the current bearish trend.

The resistance level to watch now is around 1.31350, which has been a rejection point in the past. A break above this level could indicate a change in market sentiment and could signal the start of an uptrend. Conversely, the key support level just below the current price is around 1.30355. A break below this level could lead to a more aggressive sell-off, pushing the price to new lows.