The USD/JPY has plummeted over 0.85% and has breached the Ichimoku Cloud (Kumo) for the first time since January 15, signaling a possible extended downtrend. The pair currently trades at 155.65, with key support levels at 155.00, 154.55, and 151.86. Resistance lies at 156.33, with a breach potentially reversing the trend towards 157.00.
Technical Outlook and Analysis
If the USD/JPY achieves a daily close below the Kumo, it will confirm the downtrend and open the path for further losses. The Relative Strength Index (RSI) suggests bearish momentum, favoring sellers with the first support at 155.00. A breach could lead to levels at 154.55 and 151.86. On the upside, breaking resistance at 156.33 could push the pair towards 157.00.
Impact on Finances
The USD/JPY’s recent price action indicates a potential downtrend, which could affect investors and traders. Those holding positions in the pair may experience losses if the downtrend continues. It is important to monitor key support and resistance levels to make informed decisions about trading the USD/JPY.