USD/JPY – 4H – SELL

The 4H chart for USD/JPY has fired a dense cluster of bearish signals, led by a Trendline Break Down and a Bear Flag, both pointing to a continuation of the downtrend. Momentum is aligned across multiple timeframes, with the 30m, 1h, 2h, and 4h all showing very strong bearish trends, while the 15m and daily charts also support the downside. The confluence of a KDJ Cross Down, SMI Signal Cross Down, and a BOP Zero Cross Up into bearish territory suggests selling pressure is still gaining strength, and the bearish candlestick patterns (Bullish Harami Cross, Long Legged Doji, Below The Stomach) reflect a market that is rejecting any short-term bullish attempts. The nearest resistance at 160.38900 is the key level to watch for the downside to continue; a clear break below the recent lows would likely accelerate the move downwards.

However, the lack of a defined nearest support level means price could seek out lower levels without a clear floor, which could make the decline sharp but also increases the risk of a sharp head fake. The lower timeframes (15m) show a solid but not a very strong trend, which is typical of a market that is still building downside momentum. The mixed signal set is not fully aligned, as the candlestick patterns are more indicative of a continuation after a brief pause, not necessarily a fresh breakdown. The current state of the dollar is dominated by trend strength, but a weak bounce towards the resistance could quickly invalidate the setup and pull the price back above the trendline.