USD/JPY

Market Structure

Following intervention by the Bank of Japan, USD/JPY experienced a sharp decline from around 164.00 toward 155.00. The move also resulted in a break below the ascending trendline and the important 160.00 support zone.

Price is now attempting to complete a pullback toward the previously broken support area. This zone could potentially act as new resistance if sellers remain in control.

🔴 Key Resistance Zone

159.60–160.70

This is the key area to monitor for a potential bearish reaction. If price enters this zone and faces strong selling pressure, the existing bearish structure could remain intact.

📉 Bearish Continuation Scenario

A rejection from the 160.00–160.70 resistance zone could trigger another bearish leg lower.

If sellers regain control following the rejection, potential downside levels include:

• 🎯 First Downside Level: 157.00
• 🎯 Second Downside Level: 155.00

A sustained move below the recent lows could further strengthen the bearish continuation structure.

⚠️ Bearish Invalidation

A decisive daily close above 160.00–160.70 would weaken the bearish setup and suggest that the broken support zone may have been reclaimed by buyers.

Such a move would require traders to reassess the current bearish structure and wait for a new confirmation.

📌 Key Levels to Watch

• Major Resistance: 160.00–160.70
• Pullback Resistance: 159.60–160.70
• Downside Level 1: 157.00
• Downside Level 2: 155.00
• Bearish Invalidation: Decisive daily close above 160.00–160.70

🎯 Trading Outlook

The key question for USD/JPY is whether the 160.00–160.70 zone can successfully act as resistance following the previous breakdown.

A clear rejection from this area would favor bearish continuation, while a sustained daily close above the zone would weaken the bearish thesis.

Watch the retest. If broken support turns into resistance, the next bearish move could follow. 📉

Disclaimer: This content is provided for educational purposes only and does not constitute financial advice. Currency markets can be highly volatile, particularly around central-bank intervention and policy announcements. Always conduct your own analysis and apply appropriate risk management before entering any trade.