USD/JPY Technical Analysis โ March 6, 2025
Market Structure & Price Action
USD/JPY is currently trading at 149.182, showing a weak bullish reaction but still respecting the broader descending trendline resistance. The pair has been following a well-defined bearish channel, making lower highs and lower lows.
Key Observations:
๐ Trendline Rejection: The price has tested the descending trendline and faced rejection, indicating sustained bearish pressure.
๐ Double Top Formation: A potential double top near 149.500 further supports a bearish outlook.
๐ต Support Zone at 148.900 - 149.000: This level has acted as strong demand previously. However, repeated retests weaken its reliability.
๐ Break and Retest Setup: If the price breaks below the support, a continuation to 148.000 and possibly 146.500 is likely.
Bearish Scenario:
A confirmed breakdown below 148.900 could trigger a sharper decline toward the 147.500 - 146.500 range, as highlighted in the projected move.
A failure to hold above the descending trendline signals strong selling momentum.
Bullish Scenario:
If buyers defend 148.900 support, the price could retest 149.500 or even attempt a breakout towards 150.000.
However, the overall trend remains bearish, favoring further downside.
Conclusion:
Bias: Bearish ๐
Key Levels to Watch:
โ
Resistance: 149.500 โ 150.000
โ
Support: 148.900 โ 147.500
A break below the support zone could accelerate selling pressure, aligning with the downtrend structure.