USD/JPY Bear Flag Points Towards 151.70
The USD/JPY pair remains in a bearish state on the four-hour chart, as it continues to trade inside a descending channel that formed after its late-July high near 164.00.
Recently, the price moved lower from around 160.00, reaching the 153.00-154.00 region before consolidating within an upward-sloping channel.
This consolidation follows a sharp bearish impulse, resembling a bear flag pattern rather than a reversal.
The key level to watch is the lower boundary of the flag around 153.30-153.50. A clean break below this area could signal that sellers are regaining control and potentially lead to another leg lower.
Projecting the previous bearish leg from the flag structure, the 100% Fibonacci extension sits around 151.70, making it the first major downside objective.