FX.co ★ USD/JPY

At the moment, I see the USD/JPY pair showing some interesting dynamics that are worth paying attention to. Based on the linear regression channel on the lower timeframe, sellers are still clearly active and in control. The channel is sloping downward, which signals bearish pressure. Because of this, I’m considering selling opportunities, especially near the upper boundary of the channel around 159.454. This level looks like a key area where sell positions are concentrated. From that upper boundary, I expect the price to move lower toward the bottom of the channel, which is around 159.067. Once the price reaches that lower level, there is a possibility that buyers will step in and try to push the market back upward. Their goal would likely be to return the price to the selling zone and attempt a breakout above 159.454, which could potentially continue the trend on the H1 timeframe. However, if the price manages to break and hold above 159.454, then the current selling setup would no longer be valid. In that case, I would need to reassess the situation, especially by looking again at the M15 chart for a clearer direction.

Interestingly, when I look at the H1 timeframe, the picture is slightly different. The regression channel there actually shows an upward trend, indicating that buyers are still active overall. Despite this, buyers seem to be losing strength against sellers. This is evident from the fact that sellers managed to break below 159.255, which signals increasing bearish interest in the market. This move could be part of a larger strategy by sellers to reverse the H1 channel direction downward. If that happens, the current bullish trend could weaken significantly, allowing sellers to take control. In that scenario, the next bearish target would be around 158.879. On the other hand, if the market regains strength and moves back above 159.255 and 159.454, then buyers could reestablish control and continue the upward trend.