USD/JPY Retreats From Highs Amid Potential Trend Shift

Published 05/08/2025, 07:35
Updated 05/08/2025, 08:00

USD/JPY is currently trading around 147.07, showing signs of exhaustion after failing to hold above the key 150.00 psychological resistance. The sharp reversal from above 151.50 has brought the price back to test both the 15-day and 20-day simple moving averages, now converging just above current price action at 147.78–147.94.

Key Observations:

  • Price has broken below both moving averages in recent days, signalling short-term bearish pressure.
  • The recent rejection at 151.50–152.00 is a strong technical level and may mark a lower high in the broader structure.
  • Price is now attempting to find support around 146.50–147.00, which previously acted as resistance and may now serve as a pivot zone.

Key Levels to Watch:

  • Immediate Resistance: 147.80–148.00 (MA confluence zone)
  • Next (LON:NXT) Resistance: 150.00 (psychological level)
  • Immediate Support: 146.50
  • Breakdown Target (NYSE:TGT): 144.50, followed by 143.00

Bias: Turning Bearish

If the pair fails to reclaim 148.00, the path of least resistance is likely lower, with potential to revisit 144.50. A daily close back above 148.50–149.00 would be required to reestablish bullish control and retarget the 150.00–152.00 area.

Momentum indicators and moving average behaviour suggest that bulls are losing steam, and bears may be preparing to drive the next move—unless 147.80 is reclaimed quickly.USD/JPY-Daily Chart

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