30-mins USD/JPY: 260 pips Drop to Trigger Trend Reversal?
Since Friday, the USD/JPY currency pair has experienced a significant drop of over 200 pips, indicating that bearish forces are currently in control of the market. This decline aligns with a classic technical indicator known as the "Death Cross," where the 20-period moving average (MA) crosses below the 60-period MA, signaling strong downward momentum.
Late on Friday and into the early hours of Monday, the pair attempted a recovery, pulling back to retest the key resistance level around 155.20, which also coincides with the 50% Fibonacci retracement level. Despite this brief correction, aggressive selling pressure soon resumed, leading to an additional decline of approximately 80 pips. The sharp rejection at the 155.20 mark suggests that it may serve as a significant resistance level going forward.
If this resistance holds, it is likely that the bearish trend will continue, potentially pushing the pair further downward by an additional 50 to 100 pips. Market sentiment remains negative, with sellers dominating the action and aiming for new lows in the near term. Traders should monitor this critical zone closely, as a sustained break below recent support levels could trigger another wave of selling pressure, amplifying the downtrend. Conversely, any sustained buying activity above the 155.20 area might suggest a potential reversal,
Late on Friday and into the early hours of Monday, the pair attempted a recovery, pulling back to retest the key resistance level around 155.20, which also coincides with the 50% Fibonacci retracement level. Despite this brief correction, aggressive selling pressure soon resumed, leading to an additional decline of approximately 80 pips. The sharp rejection at the 155.20 mark suggests that it may serve as a significant resistance level going forward.
If this resistance holds, it is likely that the bearish trend will continue, potentially pushing the pair further downward by an additional 50 to 100 pips. Market sentiment remains negative, with sellers dominating the action and aiming for new lows in the near term. Traders should monitor this critical zone closely, as a sustained break below recent support levels could trigger another wave of selling pressure, amplifying the downtrend. Conversely, any sustained buying activity above the 155.20 area might suggest a potential reversal,
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