**USD/JPY Prepares to Break Key Support Level**
*Rewritten and Expanded by [Your Name], based on analysis from Economies.com, originally authored by Economies.com Analysts on August 29, 2025.*
The USD/JPY currency pair has recently shown signs of increased bearish pressure as it gravitates toward a pivotal support level. Technical patterns and market sentiment suggest the potential for a significant breakdown below current levels, which may trigger a stronger downside wave if confirmed. In this detailed analysis, we examine the price actions, technical indicators, and likely scenarios that traders should monitor closely in the upcoming sessions.
This expanded report builds upon the initial technical analysis provided by Economies.com, adding further depth and context to help traders and investors make informed decisions.
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## Latest Price Action and Market Behavior
In recent sessions, the USD/JPY pair has continued to face downward pressure, showing signs of weakness near the key horizontal support around the 145.00 region. This area has historically served as a significant zone for buyers, acting as a floor for the price multiple times over the past several months. However, current momentum suggests a possible breach of this critical level.
– The pair traded at 145.15 at the time of analysis, approaching the previously tested support at 145.00.
– A steady bearish trajectory has been forming since the price rejected higher resistance levels near 146.80 during earlier sessions.
– Persistent rejection at previous resistance levels has strengthened the bearish narrative.
The current technical pattern indicates that the pair is entering a period of consolidation but remains vulnerable to downward pressure influenced by both technical and macroeconomic factors.
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## Technical Analysis
### Chart Overview
The 4-hour and daily charts display consistent downward trends driven primarily by successive lower highs and weakening bullish momentum. A key descending triangle pattern appears to be forming on lower timeframes, further validating the bearish outlook.
### Key Levels to Watch
– **Immediate Resistance: 146.00**
– Price previously found resistance around this level.
– A break above this point would invalidate the bearish setup.
– **Immediate Support: 145.00 (Critical)**
– This is the foundational level keeping prices from slipping into a deeper correction.
– Should the pair break below this support, it would confirm the bearish continuation pattern.
– **Secondary Support: 144.40**
– This is the next downside target following a confirmed break of 145.00.
– A drop to this level would indicate stronger bearish momentum and potential trend reversal.
– **Extended Target: 143.60**
– This level serves as a mid-term support area if selling intensifies.
### Technical Indicators
– **Relative Strength Index (RSI)**
– RSI on the 4-hour chart moved toward the 40 level, showing weakness but not yet oversold.
– A move below 30 would increase the probability of extended downside.
– **Moving Averages**
– Price is currently trading below the 50-period Simple Moving Average (SMA) on the 4-hour chart.
– The 200-period SMA also lies above the current price, suggesting overall bearish control.
– **MACD (Moving Average Convergence Divergence)**
– MACD lines are trending in bearish territory on intraday charts.
– A bearish crossover occurred in recent sessions, supporting negative price momentum.
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## Bearish Scenario and Breakdown Potential
The market sentiment around the USD/JPY currency pair has been gradually shifting toward bearishness due to multiple factors. Should the price break below the 145.00 support level with confirmation (such as a daily candle close beneath this point), traders can expect a downward extension to subsequent support levels.
### Conditions Validating a Bearish Breakdown:
– Failure to reclaim or hold above the 145.00 level in near-term sessions.
– RSI breaking into oversold territory without bullish divergence.
– Increased volume on bearish candles indicating institutional selling.
– Continued resistance near
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