Looking at the USDJPY chart, several patterns indicating a developing downtrend are seen. They include a few strong bearish (red) candlesticks, attempting to breach the support zone between 146.000 and 147.000. Limit orders are currently protecting this area, but a breakdown appears inevitable. A sustained move toward 145.800 would signal a failure of this support level. On higher timeframes (daily and weekly charts), a head-and-shoulders-like pattern has emerged, with a neckline around 140.000, which is likely to act as the medium-term target for USDJPY. However, in the near term the pair will be drawn to the 143.000 level.
Fundamentally, the bearish outlook is supported by expectations of Federal Reserve (Fed) rate cuts and subsequent dollar weakness. Additionally, significantly elevated financial risks—stemming from recent US administration policies—are triggering capital flows into safe-haven assets, such as the Japanese yen. In other words, macroeconomic conditions suggest that the dollar is likely to weaken over the medium term, while the yen is poised to appreciate.
The overall recommendation is to sell USDJPY when the price hits 145.800, with Take Profit at the level of 143.000 and Stop Loss at 148.000.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
