As of May 30, 2025, USD/JPY continues its downtrend on the 1-hour chart, breaking below the key level of 143.80. This breach of recent support highlights the growing selling pressure in the market. In this analysis, we explore price movements through the lens of technical analysis, examining multiple indicators including moving averages (MA), MACD, ADX, and volume.
Data sourced from cTrader platform
On the chart, the blue 50-period moving average (MA50) has crossed below the red 200-period moving average (MA200), forming a so-called “death cross.” This is widely recognized as a sign of a medium- to long-term downtrend. The current price is clearly below both MAs, indicating a prevailing market condition favoring sell-on-rally strategies.
The MACD line (red) remains below the signal line (yellow), and the histogram is stable in negative territory. This indicates continued bearish sentiment, and from a momentum perspective, downward pressure remains strong. Until a clear reversal signal appears on the MACD, traders are advised to stay cautious with buy entries.
The ADX currently hovers around “30,” indicating a reasonably strong trend. When ADX exceeds 20–25, trend-following strategies tend to be effective. At this point, a clear downtrend is in progress based on this indicator.
Volume bars at the bottom of the chart show a noticeable spike as the price broke below 143.80, adding credibility to the breakdown. This suggests increased short positions or a wave of stop-loss triggers, possibly fueling a chain reaction of selling.
| Level | Price | Significance |
|---|---|---|
| Short-term Support | 143.50 | Recent low where a rebound was observed |
| Next Target | 142.80 | Mid-term support zone observed in late April |
| Short-term Resistance | 144.50 | Price zone overlapping MA50 and MA200 |
| Mid-term Resistance | 145.50 | Previous high with notable volume concentration |
Overall, the 1-hour chart of USD/JPY shows a strong bearish bias, with multiple indicators in technical analysis pointing toward continued downside. The formation of the death cross, combined with MACD and ADX signals, supports a short-term sell-on-rally approach.
On the other hand, whether the 143.50 support can hold will be crucial for a rebound. If this level is breached, a further drop toward the 142.80–142.50 range becomes likely. Even in case of a rebound, caution is advised until the price breaks above the 144.50 resistance.
When trading, it is essential to establish clear stop-loss rules and apply rigorous risk management based on your position size and acceptable loss levels.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please trade based on your own judgment and responsibility.
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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