Title: USD/JPY Remains Within Bearish Corrective Channel: Technical Analysis for April 10, 2025
Original source: Economies.com – Analysis by Economies.com on April 10, 2025
(Original article: https://www.economies.com/forex/usd-jpy-analysis/the-usdjpy-is-moving-within-bearish-corrective-channels-range–analysis-10-2025-121926)
Overview:
The USD/JPY currency pair has maintained a downward trajectory as it continues to trade within a bearish corrective channel. Technical indicators and chart patterns suggest that the pair is currently undergoing a correction, with bearish momentum prevailing in the short term. This analysis examines the current price action, key levels to watch, and potential scenarios based on price behavior and technical studies.
Recent Performance and Technical Outlook:
– As of today’s session, USD/JPY is navigating through a corrective channel that is clearly defined by lower highs and lower lows.
– The pair remains below the 50-day Exponential Moving Average (EMA50), reinforcing the current bearish trend.
– Ongoing downward price movements suggest a continuation of this correction phase, with sellers maintaining control over the market for now.
Support and Resistance Levels:
Support and resistance levels provide a framework to understand where the price might bounce or reverse. These are key to formulating entry and exit strategies for short-term and medium-term traders.
Key resistance levels include:
– 150.50: This level is near the upper boundary of the bearish channel and could serve as a strong ceiling if prices try to rally.
– 151.30: The previous consolidation area where sellers regained momentum. Breaking above this would signal a bullish reversal.
– 152.20: A higher resistance tied to previous highs in March, marking an area where significant selling pressure might return.
Notable support levels are:
– 149.20: A key level that has previously acted as both support and resistance. A confirmed break below this point could pave the way for further declines.
– 148.40: A historical support level from earlier in the year, relevant due to confluence with the bottom of the corrective channel.
– 147.60: The last major swing low before major buying interest emerged. A retest would suggest deepening bearish conditions.
Analysis of the Bearish Corrective Channel:
– The descending channel on the 4-hour chart shows clear control by sellers, with rebound attempts being capped by the upper boundary of the channel.
– Consistent lower highs indicate that rallies are sold into quickly, a classic characteristic of corrective downtrends.
– The overall structure resembles a technical correction in a broader bullish trend, suggesting that unless key support levels give way, the long-term uptrend remains intact.
Price Action Dynamics:
Several chart patterns and candlestick formations have contributed to shaping recent sentiment:
– Bearish engulfing patterns have appeared at minor resistance zones, indicating continued pressure.
– Pullbacks within the channel meet resistance before continuation—confirming sellers’ dominance.
– Momentum indicators such as RSI (Relative Strength Index) remain below 50, suggesting poor buying interest during rebounds.
Potential Scenarios:
There are two principal scenarios to consider, depending on whether the pair breaks out of the current bearish correction or remains confined within the channel.
Scenario 1: Bearish Continuation
– If USD/JPY breaks below 149.20 decisively and volume supports the move, a decline toward 148.40 becomes likely.
– A failure of the aforementioned level might push prices lower toward the next key support of 147.60.
– Momentum readings would need to stay low and declining to confirm this bearish path.
– In this situation, short trades dominate with stop losses set above 150.50.
Scenario 2: Bullish Reversal Attempt
– Should the pair break above 150.50 and sustain the move with growing trade volumes, a test of 151.30 is likely.
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Explore this further here: USD/JPY trading.