USDJPY Signals Potential Bearish Correction After Extended Upward Momentum

Market Analysis – November 5

USDJPY signals potential bearish correction after extended upward momentum. The USDJPY pair shows early signs of bearish retracement as price action faces rejection from the major resistance block around $154.80, aligning with a flattening 9-day simple moving average near $153.20.

The Relative Strength Index hovers around 62, suggesting that bullish momentum is waning as the market approaches overbought territory. This convergence of technical factors implies growing exhaustion among buyers and a potential shift toward short-term selling pressure.

USDJPY Key Levels

Supply Levels: 154.800, 158.880
Demand Levels: 146.600, 139.880

USDJPY Long-Term Trend: Bearish

Technically, the pair has tested the upper boundary of a long-standing resistance zone between $153.50 and $154.80, where previous rallies have struggled to sustain momentum. The emergence of rejection candles at this level highlights strong institutional selling interest, while the visible imbalance zone near $149.00 suggests a possible price magnet to restore equilibrium. The upward trendline from May remains intact for now but could soon face pressure if selling accelerates.

Looking ahead, a decisive break below the $153.00 handle would likely confirm bearish continuation toward the imbalance area at $149.00, aligning with the ascending trendline support. Should this zone fail to hold, further downside could extend toward $146.60 before any significant rebound occurs. Overall, the technical landscape points toward a corrective phase, with sellers likely to dominate short-term price action.

USDJPY Short-Term Trend: Bearish

USDJPY is showing early signs of bearish reversal on the four-hour chart as price fails to sustain above the resistance zone near 154.80. The pair has broken below the 9-period SMA, suggesting waning bullish momentum and a possible shift toward selling pressure.

RSI is retreating from overbought levels, confirming weakening buyer dominance in the short term. A decisive break below the ascending trendline could open the way toward 149.40 and possibly 146.60 in the coming sessions.

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