USD/JPY Continues Downward Trend, Bearish Bias Remains

The USD/JPY currency pair continued its downward trend for the second consecutive day, trading at around 156.90 during the European hours on Monday. The pair is moving within a symmetrical triangle, indicating a period of market consolidation where neither buyers nor sellers are in control.

The near-term bias for the USD/JPY remains bearish as it holds below both the nine- and 50-period Exponential Moving Averages (EMAs). The alignment of short- and medium-term EMAs above price suggests that rallies remain capped, while the 14-day Relative Strength Index (RSI) is at 47, hinting at consolidative momentum rather than oversold conditions.

The recent easing in the FXS Fed Sentiment Index to 147.72 reinforces a softer tone for the dollar against the Yen. The USD/JPY pair could rebound towards the immediate barrier at the nine-day EMA of 157.12, followed by the 50-day EMA of 158.03.