Title: USD/JPY Continues to Weaken – Technical Analysis for July 24, 2025
Source: Economies.com
Author: Economies.com Analysis Team
The USD/JPY currency pair extended its downward trajectory during the trading session of July 24, 2025. The pair experienced increasing losses, signaling a firm bearish trend that has been supported by various technical indicators. In this analysis, we explore the technical landscape of the pair, provide projections for the upcoming sessions, and outline potential scenarios based on price behavior and trend momentum.
Market Overview
The current weakening of the US dollar against the Japanese yen follows a consistent bearish momentum that the pair has maintained in recent days. USD/JPY began the session on a corrective move lower and breached a significant support level, which is expected to accelerate further price declines.
Several factors are influencing this movement:
– Failure to hold above critical support levels.
– Sustained pressure from selling momentum.
– Lack of positive catalysts for the USD amid changing expectations around the Federal Reserve’s monetary policy.
– Growing safe-haven demand for the Japanese yen driven by global uncertainties.
The bearish direction is becoming more evident on multiple timeframes, confirming the strength and persistence of the current trend. Technical indicators reinforce this scenario by displaying patterns consistent with downward market behavior.
Technical Analysis
The pair broke through an important support level at 155.25, which had previously acted as a consolidation floor. This level is a key technical area, and breaking below it indicated bearish strength and increased the likelihood of more downside.
Key Technical Observations:
– Price Action: The candle structure shows continued rejection of higher levels, with lower highs and lower lows forming on the hourly and daily chart. The downward slope of trendlines aligns with this bearish flow.
– Moving Averages: USD/JPY is trading below its 50-day and 100-day Exponential Moving Averages (EMAs), which provide resistance and validate the strength of bearish momentum.
– Relative Strength Index (RSI): The RSI on the 4-hour chart is trending below the neutral 50 line, approaching oversold territory. This suggests strong selling activity, although traders should monitor for possible divergences to avoid false signals.
– MACD: The Moving Average Convergence Divergence (MACD) indicator displays a widening of the histogram below the signal line, confirming the bearish momentum.
– Fibonacci Retracement: The move down seems to be finding interim support near the 38.2% Fibonacci retracement of the recent upward swing, indicating that traders are watching these levels for short-term consolidation or bounces.
Next Target Levels
As bearish momentum builds, new support zones come into focus. Technical projections suggest the pair could descend further if current conditions persist.
Immediate Support Levels:
– 154.20: A psychological and historical support level where previous consolidations occurred.
– 153.40: A horizontal support on the daily timeframe, aligned with past price reactions.
– 152.60: Represents a cluster where buyers previously stepped in, making it a potential level for a bullish response.
Resistance Levels if Correction Occurs:
– 155.25: Now turned into resistance after the recent break of support. A retest and failure to move higher could reinforce bearish bias.
– 156.00: Round number resistance and previously tested price level, often watched by institutional traders.
– 157.15: A previous swing high where sellers emerged in past rallies.
Trading Strategy
Traders are advised to follow the dominant trend direction and refrain from entering long positions unless confirmed signs of reversal appear. The bearish setup remains firmly intact, offering potential opportunities to short the pair on pullbacks to resistance.
Recommended Actions for Traders:
– Sell the rallies: Consider short entries near the newly established resistance at 155.25 and 156.00 with tight stops above the resistance zone.
– Watch for confirmation: If the price fails to break above these resistance points and shows renewed weakness, it confirms bearish control.
– Risk management
Explore this further here: USD/JPY trading.