Title: USD/JPY Faces Negative Pressure Amid Bearish Momentum – Analysis by Economies.com
Original Author: Economies.com
Date of Original Analysis: September 1, 2025
Source: https://www.economies.com/forex/usd-jpy-analysis/the-usdjpy-is-under-negative-pressure–analysis-01-09-2025-120737
Overview:
The USD/JPY currency pair has recently experienced increased bearish momentum as it comes under renewed negative pressure. According to the latest technical analysis released by Economies.com on September 1, 2025, indicators point toward further downside movement in the pair, driven by the failure to maintain bullish attempts and pressures mounting below key resistance levels. This comprehensive breakdown delves into the critical technical signals, key price levels, potential scenarios, and overall market sentiment influencing the USD/JPY exchange rate in the current economic context.
Key Technical Insights:
– The USD/JPY pair encountered resistance around 146.00, prompting a downward pullback.
– Bearish momentum was confirmed as the pair consolidated below key moving averages.
– The descending channel pattern still governs the short-term trend.
– The 50-day Exponential Moving Average (EMA50) acts as dynamic resistance, intensifying selling pressure.
Technical Indicators and Analysis:
Support and Resistance Levels:
– Key Resistance: 146.00
– The USD/JPY pair faced strong selling pressure near this level, failing to break through multiple times.
– Intermediate Resistance Levels:
– 145.50: A breach above this point would signal a potential bullish reversal.
– 144.80: Minor barrier, a return above it might restore short-term optimism.
– Key Support: 144.00
– This level is critical for maintaining a neutral bias. A clear break below could open further losses.
– Further Support Levels:
– 143.30: The next major downside level; breach could extend further to the lower boundaries.
– 142.60: Represents a potential bottom for near-term bearish momentum.
Trend Line and Chart Patterns:
– Descending Channel: The pair remains constrained within a downward-sloping channel pattern visible on the 4-hour and daily charts. Price consistently trades below the upper boundary.
– Failure to Exit Upper Channel: The pair’s approach toward the upper trendline of this channel was rejected, reaffirming the bearish price structure.
– Bearish Candlestick Formations: Continuous appearances of long-leg doji and bearish engulfing candles further strengthen selling signals.
Moving Averages:
– EMA50 (Exponential Moving Average – 50 Period): Positioned above current market price.
– EMA50 has turned downward, aligning with the prevailing negative sentiment.
– The price’s inability to surpass the EMA50 signals strength in the downtrend.
– EMA100 and EMA200: Not immediately influential in the short term but remain neutral to supportive below current price levels.
MACD (Moving Average Convergence Divergence):
– The MACD Histogram is printing negative readings.
– MACD Line crosses below the signal line, supporting bearish continuation.
– Divergence between MACD and price action was noted earlier, acting as a precursor to the current dip.
RSI (Relative Strength Index):
– RSI on the 4-hour chart is approaching the 40 zone, suggesting increased bearish pressure.
– A move below 40 could signal deeper losses ahead.
– No oversold conditions yet, indicating further room for declines.
Trading Strategy and Outlook:
Based on the technical structure and momentum indicators, the USD/JPY pair is more likely to extend downward movement unless clear bullish catalysts emerge. Traders are advised to remain cautious and monitor price action around the pivotal support levels for any signs of reversal or breakout.
Short-Term Forecast:
– Bearish bias is favored, especially as long as the price remains below 145.50 and the EMA50.
– Immediate downside target: 143.30
– Secondary downside target: 142.60
Bearish
Explore this further here: USD/JPY trading.