USD/JPY Dives into Bearish Territory as USD Faces Resistance
The USD/JPY currency pair has entered a bearish zone after plummeting over 500 pips from its previous high of 160.40.
The pair failed to remain stable above 160.00 and fell below 158.00, 156.20, and 155.00 levels, settling below the 100 simple moving average (red) and the 200 simple moving average (green).
A bearish continuation pattern could be forming with resistance at 154.80 on the 4-hour chart, while an immediate resistance is near the 23.6% Fib retracement level of the downward move from the 160.39 swing high to the 152.88 low at 154.65.
The next major resistance might be 155.25, with a close above this level potentially starting another steady increase and targeting 156.60.
On the downside, if there is another decline, the pair might find bids near 153.40, while a break below 152.85 could start a major leg down and aim for 150.00.