FX.co ★ Royal_king | USD/JPY

USDJPY USDJPY is currently trading at 156.538 on the 4-hour timeframe, and the overall structure reveals a market that has been in a sustained downtrend since the June 22 peak at 164.455, with sellers maintaining firm control and pushing price lower through a series of lower highs and lower lows. The pair has declined significantly from the 164.455 resistance, breaking through multiple support levels including 163.510, 162.565, 161.620, 160.675, 159.730, 158.785, 157.840, and most recently 156.895, before finding temporary support near the 156.538 zone. This relentless selling pressure indicates that bearish momentum remains strong, and each recovery attempt has been met with aggressive selling, reinforcing the downside bias. The current level at 156.538 represents a critical inflection point, as the pair is now testing a key support zone that could determine the next major directional move. From a technical perspective, the 156.538 level has emerged as a significant support area, and the fact that price has been hovering around this level suggests that buyers are attempting to establish a foothold. However, the overall trend structure remains bearish as long as price trades below the descending trendline connecting the lower highs from 164.455 and subsequent peaks. The recent price action shows that the pair has been consolidating in a range between 155.440 and 156.636, indicating indecision and a potential accumulation phase before the next directional move. A break below 155.440 with strong bearish candles would signal a continuation of the downtrend and open the door toward the next major support at 155.005 and potentially 154.000 if selling momentum intensifies. On the upside, a clear break above 156.636 would be the first sign of a potential reversal, but the pair would then face significant resistance at 157.840 and 158.785, which would need to be overcome to confirm a trend change. For traders looking to position themselves, the most prudent approach is to wait for a confirmed breakout from the current consolidation range. A clean break below 155.440 with strong bearish momentum would present a shorting opportunity targeting 155.005 and potentially lower, with stops placed above 156.636 to manage risk. Conversely, a break above 156.636 with sustained buying pressure could offer a long opportunity targeting 157.840, but this remains a higher-risk contrarian play given the dominant downtrend. The H4 timeframe provides a solid perspective for swing trades, and with the trend clearly favoring sellers, patience and discipline are essential for traders looking to capitalize on the ongoing bearish momentum. Ultimately, the path of least resistance remains to the downside until a clear bottoming pattern emerges.