**USD/JPY Market Sentiment & Technical Forecast**
In our recent analysis, the USD/JPY pair presents a bearish narrative, continuously trading within a descending channel pattern. The crucial moment came when the price breached below the 146.500 support level, retesting and establishing it as a new resistance, which is a significant indication of the pair's current bearish strength. The possibility of an upward break seems marginal at this juncture.
**Technical Observations:**
USD/JPY's engagement with the 145.00 resistance is critical. Currently, the bearish outlook is confirmed, but any break above this could flip the view to bullish, eyeing the 149.000 mark. However, the recent technical developments do not strongly suggest such a bullish reversal is forthcoming.
**Market Considerations:**
Our analysis remains bearish, yet we are vigilant of potential market shifts triggered by the upcoming GDP report. Given the unexpected lower figures from the previous month and the implications of Chairman Powell's remarks, we anticipate possible spikes in market volatility. As we factor in the steady building permits data, the forthcoming consumer confidence index, and the GDP release, along with the Bank of Japan's (BoJ) recent statements, we remain bearish and don't expect any sudden changes in direction.
**Strategic Approach:**
Our strategy is one of cautious observation with a continued bearish outlook considering the confluence of economic reports and central bank insights. We advise a prudent yet agile stance, prepared to engage with the market's evolving narrative.
In our recent analysis, the USD/JPY pair presents a bearish narrative, continuously trading within a descending channel pattern. The crucial moment came when the price breached below the 146.500 support level, retesting and establishing it as a new resistance, which is a significant indication of the pair's current bearish strength. The possibility of an upward break seems marginal at this juncture.
**Technical Observations:**
USD/JPY's engagement with the 145.00 resistance is critical. Currently, the bearish outlook is confirmed, but any break above this could flip the view to bullish, eyeing the 149.000 mark. However, the recent technical developments do not strongly suggest such a bullish reversal is forthcoming.
**Market Considerations:**
Our analysis remains bearish, yet we are vigilant of potential market shifts triggered by the upcoming GDP report. Given the unexpected lower figures from the previous month and the implications of Chairman Powell's remarks, we anticipate possible spikes in market volatility. As we factor in the steady building permits data, the forthcoming consumer confidence index, and the GDP release, along with the Bank of Japan's (BoJ) recent statements, we remain bearish and don't expect any sudden changes in direction.
**Strategic Approach:**
Our strategy is one of cautious observation with a continued bearish outlook considering the confluence of economic reports and central bank insights. We advise a prudent yet agile stance, prepared to engage with the market's evolving narrative.
Trade active:
We entered our positions as soon as we saw a break of the 143.00 level. Expecting the price to push further down, as it did and now creating a correction and we are expecting a retest and continuation.