USDJPY – Bears Maintain Control, Targeting Key Support

USDJPY extends its decline for the fifth consecutive session, pressured by a double rejection at the 148.49 Fibo barrier (76.4% of the 151.15/139.88 decline) and a bull-trap formation, which triggered a shift in direction.

The drop is driven by a weaker dollar (losing its safe-haven appeal amid US-China trade optimism) and signals that the Bank of Japan may resume tightening, boosting demand for the yen.

Bears are now targeting critical support at 144.26 (50% retracement of the 139.88/148.64 recovery, reinforced by daily Kijun-sen and a bullish trendline from 139.88). A clear break below this level would further deteriorate the near-term structure, exposing the pair to a deeper pullback.

Technical indicators weigh on the outlook, with the falling thick daily cloud, bearish alignment of daily moving averages, and a long upper shadow on last week’s candle signaling increased selling pressure and a potential reversal on the weekly chart.

However, strong support at 144.26 may limit immediate losses, leading to consolidation before another attempt at a downside break.

Near-term bias remains bearish while the price stays below the daily Tenkan-sen (145.51).

Res: 145.30; 145.51; 146.10; 146.58
Sup: 144.26; 143.84; 143.23; 142.38