**USD/JPY Faces Negative Pressure: Analysis and Outlook**
_Credit: economies.com_
The USD/JPY currency pair has been under increasing negative pressure, with recent market movements suggesting a potential shift in short-term trends. Drawing from the detailed analysis published by economies.com, this article examines the technical and fundamental factors influencing the pair as of September 15, 2025. The evaluation includes a close look at technical chart patterns, key support and resistance levels, relevant economic data, and broader market sentiment.
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### Current Market Overview
The USD/JPY pair, which reflects the value of one US dollar in terms of Japanese yen, has shown significant fluctuations in recent months. Several forces are contributing to ongoing volatility, ranging from macroeconomic data releases in both the United States and Japan, central bank policies, and global risk sentiment.
#### Key Observations:
– USD/JPY has faced sustained downward momentum, periodically breaking below crucial short-term support levels.
– The negative pressure is attributed to both technical factors and shifts in economic indicators for both currencies.
– Market participants are closely watching the pair for signs of either a deeper correction or a potential reversal.
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### Technical Analysis
A thorough technical analysis reveals notable trends and price actions shaping trader expectations:
#### Recent Candlestick Patterns
– The USD/JPY displayed bearish candlestick formations over the last several trading sessions.
– Price action has consistently closed below the 50-period moving average, which previously acted as a near-term support indicator.
– Momentum oscillators, such as the Relative Strength Index (RSI), point toward an oversold region, but no clear reversal signals have been validated yet.
#### Support and Resistance Levels
– **Immediate Support**: The 146.50 area stands out as the nearest support level. In recent sessions, the price tested this level, briefly breaching it to the downside.
– **Secondary Support**: Further downside could be anticipated toward the 145.00 area, which aligns with previous consolidation zones and a fib retracement level.
– **Short-term Resistance**: Upside attempts continue to be capped near the 148.70 area, where sellers have regrouped in recent attempts to recover.
– **Higher Resistance**: Should bullish correction occur, watch the 149.40 and 150.00 psychological levels.
#### Moving Averages
– The 20-period EMA (Exponential Moving Average) and 50-period MA (Moving Average) have both started to slope downward, reflecting selling pressure.
– Daily closes below these averages reinforce the bearish bias.
#### Oscillator Readings
– RSI readings have trended below 40, edging closer to oversold territory but not yet signaling a reversal.
– The MACD histogram has widened negatively, while its signal line remains below the baseline, further supporting the bearish scenario.
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### Fundamental Factors
The technical landscape is being reinforced by a host of fundamental factors stemming from both economies.
#### United States
– **Federal Reserve Policy**: The Fed’s stance on interest rates has been closely watched. Despite ongoing speculation about potential cuts later in the year, recent data suggest that the central bank is proceeding with caution.
– **Inflation Data**: Core CPI and broader inflation prints have been sticky, keeping the US dollar relatively buoyant in longer-term outlooks.
– **Labor Market**: Recent non-farm payroll numbers have come in slightly below expectations, raising concerns about the robustness of the US recovery.
– **Treasury Yields**: A modest dip in US Treasury yields has coincided with periods of weakness for the US dollar against the yen.
#### Japan
– **Bank of Japan Policy**: The BoJ has continued its ultra-loose monetary policy, but recent remarks by policymakers allude to the possibility of monetary adjustment should inflation targets be sustainably met.
– **Inflation Developments**: While Japanese inflation remains below the target, trends have shown higher consumer prices and modest wage growth.
– **Safe Haven Demand**: Heightened geopolitical
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