$USDJPY

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USDJPY | Bearish Momentum Builds Below Key Resistance; Watch Support Rebound

The USD/JPY pair is currently exhibiting a short-term bearish posture on the intraday charts, following a downward shift from recent highs. After rejecting the 158.429 level, the price has faced sustained selling pressure, dipping to a low near 157.784 before finding temporary footing.

On the technical front, moving averages are tilting toward a bearish alignment. The price is currently being pressured below the short-term weighted moving averages (WMA5 at 157.963 and WMA10 at 157.942), indicating that intraday rallies are facing immediate supply. Furthermore, the 1-hour chart shows the price trading well below the middle band of the Bollinger Bands (MB: 158.227), suggesting that the recent upside momentum has faded and price is now testing the lower boundary of the current volatility range.

Trading Plan and Key Levels

In my trading plan, I would avoid chasing the market at these current lows, particularly as the MACD on the 15-minute chart shows early signs of bullish divergence and a potential shift in momentum. Instead, I would monitor for a relief rebound to reassess potential bearish setups, or look for a confirmed structural base near immediate support.

Based on the chart, the immediate area to watch on the downside is the recent swing low around 157.784, with the next major structural support near the 1-hour lower Bollinger Band at 157.774. If selling pressure intensifies and the price breaks below this zone, the next area to watch would be the psychological level at 157.300.

On the upside, any short-term rebound will first need to reclaim the 157.940 to 158.000 zone (the cluster of short-term moving averages and the 15-minute upper Bollinger Band). If price rallies into this area and signals like long upper wicks or closes that fail to hold above the level appear, that would be a more appropriate entry point to monitor further downside continuation. The next significant resistance lies near the 1-hour mid-Bollinger band at 158.227.

The key is to wait for confirmation signals from price action rather than predicting the next move. When trading CFDs in this volatile environment, be sure to manage position size strictly and set a stop-loss in advance to protect against sudden reversals.#USNonfarmPayrolls