What triggered dollar vs yen price's latest price pullback

Traders Union
All News
Financial News
Dollar vs yen slides 0.62% today

Highlights

USDJPY sustains a bullish structure, trading above key moving averages across all major timeframes.
Overbought indicators contrast with weak momentum and intraday selling pressure, signaling increased risk of a short-term pullback.
Baseline scenario projects the pair to range between ¥157.46 and ¥159.37, with high odds of further upside barring a break below ¥157.05.

Anton Kharitonov, expert at Traders Union, notes that USD/JPY holds firmly above its key moving averages. He is wary that upside momentum is fading, as overbought conditions in RSI and CCI signal risk of exhaustion. The lack of recent news leaves price action vulnerable to abrupt sentiment shifts. Weak ADX readings and early session selling pressure hint at fragile bullishness. "We could see a swift reversal if support at ¥157.05 breaks — disciplined traders should stay vigilant here."

Viktoras Karapetjanc, expert at Traders Union, sees the current market as structurally robust for USD/JPY. He highlights that the cross remains in a clear uptrend above all major averages. Despite a lack of news flow, bullish technical signals on the W1 chart support the potential for further gains. "The bullish structure remains intact and I expect new trading opportunities above ¥159.37 in the days ahead."

Overbought signals and weak trend strength as price faces renewed selling

The nearest dynamic support is indicated by the Ichimoku Kijun line at ¥157.05, while resistance is seen near the MA-50 at ¥156.17 or above recent round levels. Momentum signals are mixed: the MACD remains in buy territory on the daily chart, but the ADX (15.74) suggests weak trend strength. Overbought conditions are seen in the RSI (70.06), CCI (91.40), and BBP (1.12), though Stoch RSI flags the D1 as still positioned for further upside and most shorter timeframes as oversold. The daily structure shows no gap between the previous close and today’s open, but the price has dipped 0.62% to trade near today’s low, suggesting renewed selling early in the session amid moderate volatility. Intraday tone shows downward pressure after the open, and the divergence between overbought oscillators and cooling momentum increases the risk of short-term pullback.

In a recent review, analysts highlighted that USD/JPY maintained a bullish posture supported by persistent upside momentum and robust technical structure. The latest price action confirms this outlook, but with indicators now showing mixed momentum and overbought conditions, traders should closely monitor for a breakout above ¥159.37 or a potential reversal below ¥157.05 as cues for the next directional move.

Source of Data: USD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.