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USD/JPY Freefalls, Sellers Trigger Aggressive Downside Move

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Aayush Jindal

Key Highlights

  • USD/JPY started a sharp decline after it failed to clear 160.80.
  • It dived over 500 pips and traded below 156.50 on the 4-hour chart.
  • EUR/USD is again moving higher toward the 1.1750 resistance.
  • GBP/USD regained traction and rallied above 1.3550.

USD/JPY Technical Analysis

The US Dollar failed to stay above 160.00 against the Japanese Yen. USD/JPY started a major decline below the 158.80 and 158.00 levels.

Looking at the 4-hour chart, the pair traded below a bullish trend line with support at 159.45. There was a close below 158.00, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).

The pair even spiked below 156.00. A low was formed at 155.53, and the pair is now correcting some losses. On the upside, the pair faces resistance at 157.50.

The first major resistance sits at 158.00. The main resistance could be 158.75. A close above 158.75 could open doors for gains above 159.20 and the 100 simple moving average (red, 4-hour). In the stated case, the bulls could aim for a move to 160.00.

Immediate support is seen near 156.75. The next support could be 156.20. A close below 156.20 might push the pair toward 155.50. Any more losses could initiate a fresh move to 152.00 in the coming days.

Looking at EUR/USD, the pair is attempting a fresh increase and a close above 1.1750 could trigger steady gains.

Upcoming Key Economic Events:

  • US ISM Manufacturing Index for April 2026 – Forecast 53.0, versus 52.7 previous.
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