USDJPY is currently around 144.047, retreating after failing to break the key resistance area around 145.396. While the pair has shown short-term recovery from its recent downtrend, the price action near resistance suggests a potential consolidation or bearish correction.

The pair attempted to break through the 145.396–145.756 resistance zone for a short period of time but was rejected, resulting in a bearish candlestick formation. The price is currently holding just above the Tenkan and Kijun lines, reflecting short-term bullish momentum. However, the broader trend remains under pressure as the Ichimoku Cloud (Kumo) remains thick and bearish, positioned significantly above current price levels.

The Stochastic Oscillator (5,3,3) is hovering around 71.15, indicating overbought conditions and weakening bullish momentum. Volume activity is stable, showing no major spike in bullish interest, which could signal exhaustion of the recent recovery rally.

Market Observation & Strategy Advice:
1. Resistance Levels: 145.396 – 145.756: Key resistance zone that capped the recent rally; bearish pressure remains active here.
2. Current Price: 144.047: The pair is now testing short-term support after rejection from resistance.
3. Support Level: 140.784: Major support and the recent swing low, a break below this could reinitiate the broader downtrend.
4. Momentum Observation: Stochastic Oscillator is near overbought territory, suggesting limited upside without fresh bullish momentum. Ichimoku Cloud remains bearish, indicating medium-term trend pressure remains downward. Tenkan & Kijun Cross shows a weak bullish alignment but lacks support from higher timeframe trends.
5. Strategy Advice:

• Sell on Rally: Consider short positions on bearish confirmation near the 145.396–145.756 resistance area.
• Short-Term Downside Target: 143.50 and 142.00 as potential retracement levels.
• Buy on Dip Strategy: Monitor price action near 140.80 for potential rebound signals.
• Trend Caution: Avoid aggressive long entries while price trades below the Ichimoku cloud.
• Stochastic Cross-Down Watch: A bearish cross in the stochastic could confirm deeper downside pressure.
  
  

Market Performance:
Forex       Last Price % Change
EUR/USD.        1.1315            +0.01%
GBP/USD        1.3290          -0.01%

Today’s Key Economic Calendar:
CN: Caixin Services PMI
US: Balance of Trade
CA: Balance of Trade & Ivey PMI s.a