USD/JPY traded around the 154.60 level at the start of the European trading session on Wednesday, hovering close to the peak of 154.78. The slight downward adjustment of the US Dollar (USD) has exerted pressure on this currency pair. However, expectations for the Federal Reserve to continue maintaining high interest rates in the future, driven by the robust US economy and stable inflation, have fueled the downward momentum of USD/JPY.
Looking at the chart, we observe that the price is gradually adjusting and preparing for a downward trajectory. The Relative Strength Index (RSI) is currently trading below the 50 level, indicating signs that the price may shift towards a downward trend. If the price continues to decline and touches the Simple Moving Average (SMA) 50 line, this currency pair may initiate a series of declines and could progress towards the SMA 100 zone, thereby entering a strong downward trend.
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As predicted, the price has decreased to the SMA 100