USD/JPY: Signs of bearish pressure – OCBC

USD/JPY is softening as lower U.S. yields and a developing descending triangle pattern tilt risks toward further downside. Pair was last at 153.48 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

USD/JPY slips as yields drop

"USD/JPY fell overnight, tracking UST yields lower while risk sentiment remained under pressure. Price pattern revealed a series of lower lows while highs appear flatlined – typically a descending triangle – which could signal fresh bearish pressure."

Daily momentum shows tentative signs of turning mild bearish while RSI fell. Risks remain somewhat skewed to the downside. Support at 152.50 (21 DMA), 151.60 (61.8% fibo). Resistance at 154.40 (76.4% fibo retracement of 2025 high to low).