The following is a rewritten version of the article titled “The USDJPY is under negative pressure – Analysis – 22-07-2025” originally published on Economies.com. Credit for the original content goes to the analysis team at Economies.com. This expanded and reformulated piece maintains the core analytical findings while providing more background and insight to meet a minimum of 1000 words.
Title: USD/JPY Faces Renewed Downside Pressure Amid Bearish Momentum
Overview
The USD/JPY currency pair came under bearish pressure as trading commenced on July 22, 2025. After attempting to stabilize above the 157.80 resistance level, the pair failed to hold gains and retreated below this critical threshold, reinforcing the dominance of the corrective bearish trend.
This development signals that bearish momentum is regaining control in the short term. The pair remains vulnerable to further losses unless bullish support reemerges to drive price action decisively above resistance zones. Meanwhile, both technical indicators and chart patterns suggest that downside risk continues to hang over the pair.
Current Market Conditions
The USD/JPY price pair currently trades with a downward bias after failing to maintain a break above the 157.80 level. The price action reflects a rejection from upper resistance zones and a re-engagement with the prevailing bearish correction phase that was first triggered earlier in the month.
A number of contributing technical and market forces are influencing the price behavior of the USD/JPY:
– Lack of decisive momentum above resistance: The bullish wave that was underway failed to secure positive consolidation above the 157.80 barrier.
– Bearish chart pattern: The pair remains affected by a previously formed double top pattern, typically a reversal formation that signifies declining bullish momentum.
– Technical resistance levels proving firm: Price has been consistently unable to penetrate or sustain movement above the 157.80 resistance, a level that remains a ceiling for upward price action.
– Negative movement of oscillators: Momentum indicators, including RSI and MACD, have signaled continued weakness and fading upward drive.
Understanding the Double Top Pattern
The double top pattern visible on the USD/JPY chart plays a central role in the current analysis. This technical formation consists of two consecutive peaks at roughly the same level, separated by a moderate trough. The pattern often signals an impending reversal from an uptrend to a downtrend, which seems to be playing out now.
Key characteristics of the double top pattern:
– First peak: Formed near previous multi-month highs, around the 158.50–159.00 range.
– Second peak: Occurred at or near the same level, confirming resistance strength and the inability for bulls to break above key resistance.
– Failure to drive breakout: Bullish traders were unable to sustain momentum past the peak, weakening confidence.
– Break of neckline: The break below the support zone connected between the trough of the pattern and the base of the move confirms the decline’s acceleration.
Bearish Scenario in Play
The current retracement after the failed bullish breakout reinforces expectations for additional negative price movement. Analysts are closely watching the 155.70 support level. A confirmed break below this threshold would accelerate the decline, exposing lower support levels and potentially deepening the bearish path.
Key elements of the bearish scenario:
– The pair is under pressure due to failed follow-through on recent bullish attempts.
– The earlier break below 157.80 signals that upside attempts remain temporary or corrective.
– Sustained movement below this level could turn the area into near-term resistance.
– A strong close below 155.70 would validate a deeper move lower.
Technical Analysis Points
Traders observing USD/JPY should be aware of the following technical configurations:
– Current support: The key support level lies near 155.70. A sustained breach could drive the pair towards subsequent support areas around 154.20.
– Resistance zone: Immediate resistance is defined at 157.80. Price action suggests this level is now a ceiling rather than a floor.
– Trend lines
Explore this further here: USD/JPY trading.