**USD/JPY Continues to Decline – Technical Analysis**
*Original Author: Economies.com*
*Date: October 10, 2025*
*Source: [Economies.com](https://www.economies.com/forex/usd-jpy-analysis/the-usdjpy-continues-the-decline–analysis-10-2025-121962)*
—
The USD/JPY currency pair maintained its downward momentum in recent sessions, reflecting increased selling pressure and negative bias on the technical levels. The pair’s decline extends a bearish trend that began following the failure to sustain a strong break above a key resistance zone. Analysts at Economies.com continue to anticipate further downside in the near term, particularly as technical indicators reaffirm the possibility of extended correction.
Here is a detailed breakdown of the analysis, technical indicators, and potential future expectations for USD/JPY as of October 10, 2025.
—
### Recent Price Actions
– The USD/JPY pair has continued to push lower after a rejection near 150.00, a significant psychological and technical barrier.
– Bearish pressures grew once the pair failed to form a new high beyond prior resistance, solidifying the notion of a short-term price top.
– As of the latest session, the pair has moved closer to the 148.00 support level, one of the key levels to watch as the next zone of interest.
—
### Bearish Technical Outlook
– The price action remains below the key exponential moving averages, which reinforces bearish sentiment in the short term.
– The 50-period EMA has begun sloping downwards, indicating a shift in momentum away from bullish price dynamics.
– Candlestick formations are increasingly biased toward sellers, showing long upper wicks and strong bearish bodies that validate downward movement.
From a trend structure perspective:
– The lower highs and lower lows seen over the last few trading sessions confirm the development of a short-term bearish channel.
– The price currently trades below support-turned-resistance levels, such as the 149.00 mark, which further builds upon the negative outlook.
—
### Key Support and Resistance Levels
The following are critical levels to watch for traders assessing potential entry and exit points:
**Support Levels:**
– 148.00: Short-term horizontal support, breached momentarily but remaining under testing.
– 147.40: A secondary support level that aligns with previous consolidation zones.
– 146.60: A deeper corrective target and possible reversal point if bearish momentum continues.
– 145.90: Considered a major fib level derived from previous rally supports in August.
**Resistance Levels:**
– 149.40: Immediate resistance, previously acting as mid-range support.
– 150.00: A psychological and technical barrier aligned with September highs.
– 150.80–151.00: Long-term resistance, marking the double top structure from earlier quarters.
—
### Momentum Indicators
A look at leading and lagging indicators provides additional confirmation regarding the current sentiment in the pair:
**Relative Strength Index (RSI):**
– RSI on both the 4-hour and daily charts shows a dip below the 50-level, indicative of growing selling momentum.
– No signs of divergence suggest that bearish movement remains intact and may persist.
**MACD (Moving Average Convergence Divergence):**
– The MACD line remains well below the signal line, creating consistent downward histograms.
– Bearish crossover that occurred earlier in the week continues to drive momentum to the downside.
**Stochastic Oscillator:**
– The stochastic maintains a bearish crossover condition and is within oversold territory, but without any clear reversal signals.
– While oversold levels may eventually result in corrective bounces, current price behavior shows no bullish divergence.
—
### Technical Patterns in Focus
The broader price structure within USD/JPY displays characteristics of a descending channel, supported by declining resistance and support lines on short-to-mid timeframe charts.
In addition:
– A double-top pattern
Explore this further here: USD/JPY trading.