On the daily chart below, we can see that the pair keeps on falling pretty hard as Treasury yields keep sagging due to the market pricing in the end of the Fed hiking cycle and several rate cuts this year. This fast repricing was caused by the recent banking woes around the regional banks.

The moving averages have crossed to the downside indicating a downtrend. The price though is a bit overextended now, as we can see from the distance between the price and the blue short term period moving average, which is generally a sign of a looming pullback.

USD/JPY technical analysis

On the 4 hour chart below, we can see that the market is trading within a downward channel. We can also see that the price is diverging with the MACD which is another sign of a possible pullback as the selling momentum gets weaker. It’s hard to envision a pullback without good US economic data though. Today we have the US PMIs and we should see the price rallying in case the data beat expectations and falling in case the data misses.

On the 1 hour chart below, we have a trendline that defines the current trend. The buyers will need a break above it to target the top of the channel, while the sellers will try to lean on it with the confluence of the red long period moving average as their first try for new shorts.