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USD/JPY Falls to Support, Setting Stage for a Potential Technical Pivot

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Aayush Jindal

Key Highlights

  • USD/JPY started a steady decline from the 157.80 zone.
  • A key declining channel is forming with resistance at 155.50 on the 4-hour chart.
  • EUR/USD started consolidating gains above 1.1625.
  • GBP/USD could aim for more gains if it settles above 1.3350.

USD/JPY Technical Analysis

The US Dollar failed to clear 157.80 and corrected gains against the Japanese Yen. USD/JPY dipped below the 157.00 and 156.00 levels.

Looking at the 4-hour chart, the pair gained pace for a move below the 50% Fib retracement level of the upward move from the 152.81 swing low to the 157.89 high. There was a close below the 100 simple moving average (red, 4-hour), and the pair traded close to the 200 simple moving average (green, 4-hour).

On the downside, there is key support at 154.75. The next support is 154.00, and the 76.4% Fib retracement level of the upward move from the 152.81 swing low to the 157.89 high. Any more losses might call for a test of 152.80.

Immediate resistance sits near 155.20. The first key hurdle is seen near 155.50. There is also a key declining channel forming with resistance at 155.50. A close above 155.50 could open the doors for a move toward 156.00. Any more gains could set the pace for a steady increase toward 156.80.

Looking at EUR/USD, the pair rallied above 1.1650 and recently started a consolidation phase. The main support sits at 1.1600.

Upcoming Key Economic Events:

  • US Personal Income for Sep 2025 (MoM) - Forecast +0.4%, versus +0.4% previous.
  • Michigan Consumer Sentiment Index for Dec 2025 (Prelim) – Forecast 52.0, versus 51.0 previous.
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