USD/JPY has rebounded to around 142.40 but remains in a downtrend. Recently, it briefly broke the key support at 142.00, signaling increased selling pressure. Technical indicators including ADX (trend strength), DMI (directional movement index), and moving averages (MA) suggest that although the downtrend has slowed, selling on rebounds remains dominant. The next key focus is whether USD/JPY can clear the 142.80–143.00 resistance zone.
USD/JPY is trading below both the 50-hour (blue line) and 200-hour (red line) moving averages, indicating a typical bearish pattern. The 50MA especially acts as strong resistance, suppressing upward attempts. Unless USD/JPY clearly breaks above 143.00, further downside risk remains.
The ADX (yellow line) is declining, showing weakening trend strength and indicating a consolidation phase. However, −DI (red line) still dominates +DI (green line), suggesting medium-term bearish momentum persists. Watch if ADX starts rising again, which would signal a new trend phase.
Volume increased during the recent decline, confirming genuine selling pressure. Current rebound volume remains low, implying weak buying momentum, making it preferable to look for selling opportunities on rebounds.
※Image source: cTrader Platform
Bearish Scenario (Sell on Rally)
Entry: Sell near 142.80–143.00
Target: 142.00–141.50
Stop loss: Above 143.20
Bullish Scenario (Short-Term Rebound)
Entry: Buy after breaking above 143.00
Target: 143.50–144.00
Stop loss: Below 142.70
Technically, USD/JPY remains bearish with moving averages, ADX, and DMI all suggesting downside risk. Unless a clear breakout above 143.00 occurs, a sell-on-rally strategy remains preferable with tight risk management.
This article is for informational purposes only and does not constitute financial advice. All trading decisions are your own responsibility.
For more FX pair analysis, check out the FIXIO blog, updated regularly!
This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
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