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USDJPY – Rejection Pressure Builds, Is a Reversal on the Horizon

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USDJPY has been rejected for the third time at the diagonal resistance line, forming a potential lower-high pattern that suggests a reversal could be underway. The RSI is dropping from the overbought zone, clearly indicating weakening bullish momentum. If the price breaks below 146.900, a bearish trend may be confirmed, with a possible move toward the lower support area.

On the news front, U.S. Treasury yields have stalled after a strong rally, and jobless claims have ticked up slightly—dampening expectations for further Fed rate hikes. This puts pressure on the USD while favoring the safe-haven JPY.

Traders should closely monitor the price action around the 149.300 level. Continued rejection could offer a prime shorting opportunity!

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