The U.S. dollar began the week - rising against the Japanese yen but the advance stopped almost immediately. James Stanley notes that USD/JPY jumped right after the weekly open then faced an even stream of sell orders that wiped out the entire early gain.
A hard refusal appeared just under 160.00 - the rate nudged above that figure for a moment then spun lower. The inability to stay up there ended the buying interest. Supply arrived and the balance of trading tilted toward the bears.
After the reversal, the pair abandoned its former upward path and started to form a down sloping pattern. Each new candle carried additional weight on the sell side.
159.45 Switches Roles
The 159.45 zone had underpinned price on the way up - once the market slipped beneath it and buyers failed to push it back, the short term trend turned negative. Brief bounces toward 159.45 attracted fresh offers - sellers kept the upper hand.
The descent proceeded step by step instead of in a single plunge, indicating a continuous flow of sell orders rather than one panic event. Rate edged toward 158.80 and the chart offered no bullish reversal signal.
USD/JPY Drops Through Three Technical Barriers
The sequence unfolded as follows
- Rejection near 160.00
- Penetration of 159.45
- Slide toward 158.80
This step wise deterioration matches the theme of relentless selling and shows that pressure never eased.
The pair now trades beneath last week's highs and observers wait to see if it will steady or slip further.
