USD/JPY Faces Downward Pressure Below 158.20 Resistance
USD/JPY is currently trading around 156.37, exhibiting a clear bearish trend after being rejected at the strong resistance zone of 158.20 - 158.30. On the daily chart, this resistance is reinforced by previous highs and pressure from the EMA 34 (154.07) and EMA 89 (152.16), which act as dynamic supports. The pair is moving along a long-term uptrend line that began in September, but recent selling pressure has introduced risks of breaking this trend.
In the short term, key support lies at 152.00 - 152.50. If USD/JPY breaks below this level, the next downside target will be 151.00 or lower. Conversely, if the price holds above the support level, the pair could retest the 158.20 resistance zone, though a breakout remains unlikely due to low year-end liquidity and uncertainty surrounding BoJ policy. Traders should monitor U.S. PMI data and signals from the BoJ to determine market direction.
In the short term, key support lies at 152.00 - 152.50. If USD/JPY breaks below this level, the next downside target will be 151.00 or lower. Conversely, if the price holds above the support level, the pair could retest the 158.20 resistance zone, though a breakout remains unlikely due to low year-end liquidity and uncertainty surrounding BoJ policy. Traders should monitor U.S. PMI data and signals from the BoJ to determine market direction.
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